Washington, DC, November 16, 2016 – The World Bank (International Bank for Reconstruction and Development or “IBRD”, rating Aaa/AAA) is pleased to announce the issuance of two new three-year Sustainable Development Bonds denominated in Mexican Peso (MXN) and Turkish Lira (TRY) and payable in euro (EUR). These bonds provide an opportunity for retail investors to combine their financial objectives with social and environmental sustainability goals.
The World Bank raises funds in the international capital markets to support sustainable development projects in borrowing member countries. These projects focus on poverty reduction and inclusive growth across a range of sectors including education, healthcare, agriculture and food security, and essential infrastructure. World Bank Sustainable Development Bonds provide investors with an opportunity to support member countries in achieving their development goals.
This is the first time the World Bank has issued MXN and TRY denominated bonds for Italian retail investors. The bonds were offered from October 31 to November 8 via the Mercato Telematico delle Obbligazioni (MOT), EuroMOT segment, organized and managed by Borsa Italiana S.p.A.to the public at large. These bonds will be listed on Borsa Italiana (EuroMOT) starting on November 16, 2016, where BNP Paribas will act as Liquidity Provider.
The MXN-denominated Sustainable Development Bonds pay a coupon every quarter at an annual rate of 4.10%. At maturity, on November 16, 2019, investors are entitled to the repayment of 100% of their original capital investment. All payments (coupons and redemption at maturity) will be made in EUR.
The TRY-denominated Sustainable Development Bond pays a coupon every quarter at an annual rate of 6.80%. At maturity, on November 16, 2019, investors are entitled to the repayment of 100% of their original capital investment. All payments (coupons and redemption at maturity) will be made in EUR.
For these bonds, the World Bank partnered with BNP Paribas, acting as Dealer and Liquidity Provider.
"It's a great pleasure to offer Italian investors two new Sustainable Development Bonds that combine financial benefits such as high credit quality, yield and currency diversification benefits, with the opportunity to make a positive impact in communities around the world. I celebrate investors that prioritise social responsibility alongside their financial objectives," said Arunma Oteh, Vice President and Treasurer of the World Bank.
“We are extremely pleased to partner with the World Bank in providing sustainable investment solutions to Italian retail investors: the current issuance is part of a more extensive program launched in July 2016, with bonds denominated in Chinese Renminbi (RMB) and Indian Rupee (INR) respectively, followed by bonds in South African Rand (ZAR) and Brazilian Real (BRL). These supranational bonds are particularly interesting, as they are not subject to bank "bail-in" provisions and provide investors with benefits in terms of both currency diversification and reduced tax rate equal to 12.50%,” said Nevia Gregorini, Head of Public Distribution, BNP Paribas Corporate & Institutional Banking.
“The twoSustainable Development Bonds issued by the World Bank are listed today ontheMOT market, the largest fixedincome retail market inEurope. The two new issues are part of a strategy that allowstheItalian market toexpandthetypes of products availableto investors. Moreover, a high–qualityissuersuchastheWorld Bank ensuresthatinvestmentsaredirectedtowardssustainable projects and, thanks to denomination in Mexican Peso andTurkish Lira,providesbenefits in termsof currency diversification,”saidPietroPoletto, Headof Fixed Income Markets at London Stock Exchange Group.
Summary of terms (*) | ||
Issuer: | World Bank (International Bank for Reconstruction and Development, IBRD) | |
Issuer rating: | Aaa /AAA | |
Maturity date: | November 16, 2019 | |
Subscription period: | October 31, 2016 to November 8, 2016 | |
Issuance date: | November 16, 2016 | |
Amount: | 75,000,000 (MXN) | 8,000,000 (TRY) |
Coupon: | 4.10% p.a. (MXN) | 6.80% p.a. (TRY) |
Quarterly coupon payment dates: | February 16, May 16, August 16 and November 16 in each year from and including February 16, 2017 to and including the Maturity Date | |
Offer price (minimum purchase amount): | MXN 40,000 (about EUR) | TRY 8,000 (about EUR) |
ISIN: | XS1508504526(MXN) | XS1508503809(TRY) |
Listing: | EuroMOT of Borsa Italiana S.p.A | |
Clearing systems: | Euroclear, Clearstream | |
Dealer: | BNP Paribas | |
All payments for the purchase, coupon payments, and principal repayment at maturity are settled in EUR.
About the World Bank
The World Bank (International Bank for Reconstruction and Development, IBRD), rated Aaa/AAA1 (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 has two main goals: to end extreme poverty and promote shared prosperity. It 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. It has been issuing sustainable development bonds in the international capital markets for over 60 years to fund its activities that achieve a positive impact. Information on World Bank 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:https://treasury.worldbank.org/sustainableinvesting.
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, corporate 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.
