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World Bank issued two more Green Growth Bonds
Total World Bank Green Growth Bond issuance exceeds USD 555 million through 16 transactions

Washington, DC, January 8, 2016 – The World Bank (International Bank for Reconstruction and Development or IBRD, rated Aaa/AAA) is pleased to announce that it has issued two more Green Growth Bonds bringing the total issued in this format to over USD 555 million through 16 transactions – approximately USD 389 million from international retail and high net worth investors and approximately USD 167 million through institutional private placements with European insurance companies, pension funds and private banks.

The most recent transactions were issued to retail investors in Europe and the United States respectively.  The European trade, which settled on January 8, 2016, was linked to the Ethical Europe Climate Care Index.  It was issued to retail investors in Belgium and Luxembourg raising USD 16.3877 million.  The U.S. trade was linked to the Ethical Europe Equity Index and settled on December 31, 2015 raising USD1.436 million.

The World Bank first issued a green bond linked to the Ethical Europe Equity Index in August 2014, which was a EUR 50 million private placement with BNP Paribas Cardif. Since then, the World Bank has issued a series of Green Growth Bonds - both institutional private placements as well as retail offerings, across geographical regions and investor bases. The World Bank’s first equity index-linked Green Growth Bond for retail investors was in Belgium in January 2015, for a total of USD 91 million. Thereafter, the World Bank diversified the program to reach other investors in Europe, including France, Italy, Luxembourg and Switzerland, as well as investors in Asia (Hong Kong and Singapore) and the U.S.

Green Growth Bonds form part of the World Bank’s Green Bond program. Since its first green bond launched in 2008, the World Bank has issued 110 green bonds in 18 currencies, totaling over USD 8.6 billion equivalent. 

Green Bonds: World Bank green bonds offer investors an opportunity to support environmental solutions through a bond product that benefits from the triple-A credit strength of the World Bank. World Bank green bonds support the financing of projects in member countries that meet specific criteria for low carbon and climate resilient growth, seeking to mitigate climate change or help affected people adapt to it. The types of eligible projects include renewable energy installations, energy efficiency projects, and new technologies in waste management and agriculture that reduce greenhouse gas emissions and help finance the transition to a low carbon economy. They also include financing for forest and watershed management and infrastructure to prevent climate-related flood damage and build climate resilience.

Ethical Europe Equity Index was designed to deliver long-term performance and consists of 30 European stocks, selected for inclusion based on an analysis by Vigeo, an independent and well-established Environmental, Social and Governance (ESG) rating agency, and Forum Ethibel, an independent Belgian consulting agency that rates and audits sustainability, ethics, and social responsibility metrics of corporations. The index is owned, calculated and managed by Solactive, a global index provider.

Ethical Europe Climate Care Index was designed by Solactive in partnership with Vigeo. This index encourages companies to improve their energy transition strategy through a unique filtering methodology that selects companies on the basis of their carbon footprint and their energy transition strategy. Environmental, social and governance (ESG) compliance and financial filters are also applied.

BNP Paribas Corporate and Institutional Banking has partnered with the World Bank to develop the Green Growth Bond products.

Transaction Summary of the Green Growth Bond 07/2024 for Retail Investors in Belgium and Luxembourg:

Issuer:

World Bank (International Bank for Reconstruction and Development, IBRD)

Issuer rating:

Aaa/AAA

Amount:

USD 16,387,700

Issue date:

8 January 2016

Maturity date:

8 July 2024

Offer price:

Maximum 102% of the Specified Denomination, i.e. USD 102.

Fixed Coupon:

None

Redemption at maturity:

100% of the capital (excluding any fees or taxes or any type of charge) + the Redemption Premium (if any)

Redemption Premium:

Amount in USD calculated by the Calculation Agent in accordance with the following:
S0 means the official closing level of the Index on Initial Observation Date
Si means the arithmetic mean of the closing levels of the Index on each Monthly Observation Date
Si/S0 – 1 is the ‘Adopted Performance’
- If Si/S0 – 1 ≤ 0 (Adopted Performance negative or null): no premium
- If Si/S0 – 1> 0 (Adopted Performance positive): premium = US$ 100 × [Si/S0 – 1] (i.e. Specified Denomination multiplied by Adopted Performance)

Underlying:

Ethical Europe Climate Care Index, a trademark owned by SOLACTIVE AG acting as index sponsor. ISIN code: DE000SLA03W2.

Initial observation date:

8 January 2016 (provided that it is a trading day, as specified in the Final Terms)

Monthly observation dates:

21 December 2021, 25 January 2022, 22 February 2022, 25 March 2022, 21 April 2022, 24 May 2022, 23 June 2022, 25 July 2022, 25 August 2022, 26 September 2022, 25 October 2022, 24 November 2022, 21 December 2022, 25 January 2023, 22 February 2023, 24 March 2023, 21 April 2023, 24 May 2023, 26 June 2023, 25 July 2023, 25 August 2023, 25 September 2023, 25 October 2023, 24 November 2023, 20 December 2023, 25 January 2024, 23 February 2024, 22 March 2024, 22 April 2024, 24 May 2024 and 18 June 2024 (provided they are trading days, as specified in the Final Terms)

Specified Denomination:

USD 100

Listing:

Luxembourg Stock Exchange (regulated market)

Governing law:

English law

ISIN:

XS1319581960


Transaction Summary of the Green Growth Bond 12/2025 for Retail Investors in the United States:

Issuer:

World Bank (International Bank for Reconstruction and Development, IBRD)

Issuer rating:

Aaa/AAA

Amount:

USD 1,436,000

Issue date:

31 December 2015

Maturity date:

31 December 2025

Issue price:

Each Note will have an Issue Price and an initial offering price of USD1,000.

Fixed Coupon:

None

Final Redemption Amount:

USD1,000 plus the Premium Paid at Maturity. The “Premium Paid at Maturity” is the product of USD1,000 multiplied by the Participation Rate multiplied by the greater of (i) the Average Index Return and (ii) zero (0).

Average Index Return:

The quotient, expressed as a percentage, as calculated by the Calculation Agent, equal to (i) the Average Index Level minus the Initial Index Level divided by (ii) the Initial Index Level

Average Index Level:

The arithmetic mean (rounded to the nearest four (4) decimal places, 0.00005 rounded upwards) of the Index Closing Levels on each Averaging Observation Date, as calculated by the Calculation Agent.

Initial Index Level:

The Index Closing Level on the Initial Observation Date, which is 192.647

Participation Rate:

101%

Index:

The return on the Notes is linked to the performance of the Ethical Europe Equity Index (the “Index”).

Initial observation date:

December 22, 2015

Averaging Observation dates:

January 22, 2024, February 22, 2024, March 22, 2024, April 22, 2024, May 22, 2024, June 24, 2024, July 22, 2024, August 22, 2024, September 23, 2024, October 22, 2024, November 22, 2024, December 23, 2024, January 22, 2025, February 24, 2025, March 24, 2025, April 22, 2025, May 22, 2025, June 23, 2025, July 22, 2025, August 22, 2025, September 22, 2025, October 22, 2025, November 24, 2025 and December 22, 2025 (each, a “Scheduled Averaging Observation Date,” and December 22, 2025, the “Final Observation Date”), subject to postponement in case of a Market Disruption Event.

Specified Denomination:

USD 1,000

Listing:

None

Governing law:

New York

ISIN:

US45905UUG74

About the World Bank

The World Bank (International Bank for Reconstruction and Development, IBRD), rated Aaa/AAA (Moody’s/S&P), is an international organization created in 1944. It operates as a global development cooperative owned by 188 nations. It provides its members with financing, expertise and coordination services so they can achieve equitable and sustainable economic growth in their national economies and find effective solutions to pressing regional and global economic and environmental problems. The World Bank Group has two main goals: to end extreme poverty and promote shared prosperity. The World Bank (IBRD) seeks to achieve them primarily by providing loans, risk management products, and expertise on development-related disciplines to its borrowing member government clients in middle-income countries and other creditworthy countries, and by coordinating responses to regional and global challenges. The World Bank has been issuing bonds in the international capital markets for over 60 years to fund its sustainable development activities and achieve a positive impact.

Information on bonds for investors is available on the World Bank Treasury website:

www.worldbank.org/debtsecurities

For more information about World Bank green bonds, see:

http://treasury.worldbank.org/cmd/htm/WorldBankGreenBonds.html

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