Washington, DC, June 28, 2016 – The World Bank (International Bank for Reconstruction and Development, "IBRD", rating Aaa / AAA1) is pleased to announce the total amount raised through World Bank Bonds for Italian retail investors now exceeds USD 1 billion. This milestone was reached with the latest Sustainable Development Bond 06/2026 that reached USD 120 million after a 3-week subscription period. This is the fourth transaction that the World Bank has issued for Italian retail investors since June 2015.
The World Bank’s mission is to end extreme poverty within the next generation and to promote shared prosperity in such a way as to be sustainable over time and across generations. This requires promoting environmental, social, and fiscal sustainability.
The World Bank raises funds in the international capital markets to finance sustainable development projects in developing countries in order to improve the living standards, protect the environmental heritage and promote across a range of sectors including among others education, healthcare and infrastructure. World Bank Sustainable Development Bonds provide investors with an opportunity to support its member countries in these efforts.
The USD 120 million fixed-to-floating bond pays an annual gross coupon at a rate equal to 2.35% per annum for the first year. Thereafter, the bond pays at a floating rate per annum equal to the 3-month USD LIBOR, subject to a cap and floor. At maturity, after ten years, investors are entitled to the repayment in US dollars of 100% of their original capital2 investment by the World Bank. The bond will be listed on Borsa Italiana (MOT) and BNP Paribas will act as liquidity provider. Further product information is available on the website www.sustainablebond.com.
In this issuance, the World Bank partnered with BNP Paribas, acting as Dealer, and Banca Akros S.p.A., acting as Co-Dealer, to promote socially responsible and sustainable investments to the Italian retail market.
Arunma Oteh, Vice President and Treasurer, World Bank said: “I am delighted that the amount raised from Italian retail investors through our Sustainable Development Bond now exceeds USD 1 billion. This milestone illustrates how investors across the world are increasingly interested in committing their money in ways that also help realize the Sustainable Development Goals. I applaud the Italian investors who recognized this bond as a high-quality investment opportunity that also makes a positive difference to the world they live in. The interest of Italian retail investors in 'doing good and doing well' has also enabled the World Bank to return to the Italian market after a 20-year absence.”
Stefano Sbranchella, Head of Global Markets Italy, BNP Paribas said: “We are pleased to see the continuing momentum towards sustainable investing among Italian retail investors. BNP Paribas is committed to remaining at the forefront of this trend, connecting the World Bank with investors to help them achieve their financial and sustainable investment goals. We look forward to continuing our relationship with the World Bank to help them shape a more sustainable future for the world.”
Summary Terms (*):
Issuer: | World Bank (International Bank for Reconstruction and Development, IBRD) |
Issuer Rating: | Aaa/AAA1 |
Maturity: | 10 years |
Issue Date: | June 28, 2016 |
Coupon: | The Bond pays an annual gross coupon at a rate equal to 2.35% per annum for the first year. Thereafter, the Bond pays at a floating rate per annum equal to the 3-Month USD LIBOR, provided that such floating rate will not be less than the minimum interest rate of 0.00% per annum or greater than the maximum interest rate of 2.35% per annum |
Fixed Coupon Payment Dates: | June 28th, 2017 |
Floating Coupon Payment Dates: | June 28th of each year from and including June 28th, 2018 to and including the maturity date |
Global Agent, Registrar and Settlement Agent and Calculation Agent: |
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Maturity Date: | June 28th, 2026 |
Offer Price: | 100% of the specified denomination, i.e. US dollar 2,000 |
| Listing: | MOT of Borsa Italiana |
| Clearing systems: | Euroclear, Clearstream |
| ISIN: | XS1410230806 |
| Dealer: | BNP Paribas |
| Co-Dealer: | Banca Akros S.p.A. |
(*) Nothing in this document should be construed as a solicitation or offer, legal, tax or other advice, or recommendation to engage in any transaction. The information in this document does not constitute a recommendation of the instrument referred to. It merely provides information and is not intended to be either a recommendation to acquire financial products or an offer or invitation to tender. Any offer of the Sustainable Development Bond 06/2026 will solely take place on the basis of the Prospectus, the Final Terms and related legal documentation. For a detailed description of the Terms and Conditions of the Sustainable Development Bond 06/2026 and the related risks with regard to an investment in the Bonds, please see the relevant legal documentation available at www.sustainablebond.com.
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 and the original member of the World Bank Group. It operates as a global development cooperative owned by 189 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 sustainable development bonds in the international capital markets for over 60 years to fund its 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 sustainable development bonds, see: http://treasury.worldbank.org.
About BNP Paribas
BNP Paribas is a leading bank in Europe with an international reach. It has a presence in 75 countries, with more than 189,000 employees, including more than 146,000 in Europe. The Group has key positions in its three main activities: Domestic Markets and International Financial Services (whose retail-banking networks and financial services are covered by Retail Banking & Services) and Corporate & Institutional Banking, which serves two client franchises: corporate clients and institutional investors. The Group helps all its clients (individuals, community associations, entrepreneurs, SMEs, corporates and institutional clients) to realise their projects through solutions spanning financing, investment, savings and protection insurance. In Europe, the Group has four domestic markets (Belgium, France, Italy and Luxembourg) and BNP Paribas Personal Finance is the leader in consumer lending. BNP Paribas is rolling out its integrated retail-banking model in Mediterranean countries, in Turkey, in Eastern Europe and a large network in the western part of the United States. In its Corporate & Institutional Banking and International Financial Services activities, BNP Paribas also enjoys top positions in Europe, a strong presence in the Americas as well as a solid and fast-growing business in Asia-Pacific.
For more information please visit www.bnpparibas.com
About Banca Akros
Banca Akros, the investment and private banking arm of Banca Popolare di Milano Group, has been a reference point for institutional, corporate and private investors for over 15 years. The bank’s strategy consists in identifying and supporting the needs of a clientele that can’t find the sort of solution they are looking for with retail banks. Investment banking and private banking have always been the two core businesses Banca Akros has specialised in. They are the founding pillars of the bank’s identity. For more information please visit www.bancaakros.it.
1.) Moody’s/Standard & Poor’s rating as of the 28 June 2016.
2.) Amount subject to the World Bank’s credit risk and foreign exchange risk where the investor changes the capital and coupons into euro.
