The World Bank today announced a partnership with SEB and several key Scandinavian institutional investors to introduce a “World Bank Green Bond” to raise funds for projects seeking to mitigate climate change or help affected people adapt to it.
Stockholm, November 6, 2008 – The bond issue is one example of the kind of innovation the World Bank is trying to encourage within its “Strategic Framework for Development and Climate Change,” launched earlier this year to help stimulate and coordinate public- and private-sector activity in this area. The offering is the first time both the World Bank and SEB have offered bonds to raise funds identified to a specific World Bank program.
"We are very pleased to partner with the World Bank for this green bond issue," said Annika Falkengren, President and CEO, SEB. “With this issue we have been able to offer our clients a product through which they can accomplish three things: take a stand towards fighting global warming, support the World Bank and its members in their efforts to fight poverty, and secure a higher return than government securities by investing in the World Bank’s Aaa/AAA-rated bonds.”
“Tackling climate change is going to take immense resources that will only come from a well-orchestrated flow of public and private finance. This transaction is an important early effort to show one way in which this can be done. We hope it demonstrates that private citizens can safely and profitably invest their savings today while also helping provide a better world for their children,” said Robert B. Zoellick, President of the World Bank Group.
The first World Bank green bonds are denominated in Swedish krona (SEK) for a total amount of SEK 2.325 billion and have a maturity of six years. The interest rate payable annually is 0.25 percent above Swedish government bond rates. SEB is the sole lead manager and will offer the bonds to investors through its distribution network. The bonds responded to demand from a group of Scandinavian investors. Credit Suisse International is a senior co-manager and Landesbank Baden-Württemberg is a co-manager for the transaction.
Summary Terms
Issuer: International Bank for Reconstruction and Development (IBRD)
Rating: Aaa/AAA
Amount: SEK 2.325 billion
Settlement date: November 12, 2008
Maturity date: November 12, 2014
Issue price: 100,157
Redemption: 100%
Coupon: 3.5%
Denomination: SEK 10,000.00 and integral multiples thereof
Listing: Luxembourg
Clearing system: Euroclear
ISIN: XS0398811959
Sole Lead Manager: SEB
This press release is not an offer for sale of Notes of the International Bank for Reconstruction and Development ("IBRD"), also known in the capital markets as “World Bank”. Any offering of the Notes will be made only by means of a prospectus containing detailed information that will made available through SEB, the sole underwriter of the notes, and is subject to restrictions under the laws of several countries. Securities may not be offered or sold except in compliance with all such laws.
SEB is a North European financial group serving some 400,000 corporate customers and institutions and five million private individuals. SEB offers universal banking services in Sweden, Germany and the Baltic countries - Estonia, Latvia and Lithuania. It also has local presence in the other Nordic countries, Poland, Ukraine and Russia and a global presence through its international network in another ten countries. On 30 September 2008, the Group's total assets amounted to SEK 2,416bn (~EUR 237bn) while its assets under management totalled SEK 1,244bn (~EUR 122bn).The Group has about 22,000 employees.
The World Bank is a global development cooperative owned by its member countries. Its purpose is to help its members achieve equitable and sustainable economic growth in their economies and to find solutions to regional and global problems in economic development and environmental sustainability, all with a view to reducing poverty and improving standards of living. The International Bank for Reconstruction and Development (IBRD), rated Aaa/AAA (Moody’s/S&P) is owned by 185 countries. It is the oldest and largest entity in the World Bank Group and provides its members with financing, risk management products, and other financing services, as well as specialized expertise and strategic and convening services requested by its member countries. To fund this activity, IBRD has been issuing debt securities in the international capital markets for 60 years. The World Bank is one of the most recognized and innovative borrowers in the international capital markets. More information about the World Bank and its activities in the capital markets is available on the web at: www.worldbank.org/debtsecurities.
