Washington, DC, April 13, 2017 – The World Bank (International Bank for Reconstruction and Development or “IBRD”, rating Aaa/AAA) is pleased to announce the issuance of the Sustainable Development Bond 05/2027, which is also referred to as the USD Callable Step-Up Fixed Rate Notes due May 5, 2027. This bond combines investors’ financial objectives with their social and environmental sustainability goals, since the World Bank finances projects across the world to support economic development that is socially and environmentally sustainable.
The 10-year USD-denominated bond will pay an annual gross step-up coupon at an annual rate from 1.90% on the first year to 2.80% on the tenth year. At maturity, in May 2027, investors are entitled to 100% repayment of their original investment in USD by the World Bank.
The bond will be offered to retail investors from April 3rd 2017 to April 28th 2017, except in the case of early closing under the conditions set out in the Final Terms. It will be listed on the MOT, EuroMOT segment of Borsa Italiana and BNP Paribas will act as liquidity provider.
The World Bank raises funds in the international capital markets to support financing of 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, food security, and essential infrastructure. World Bank Sustainable Development Bonds provide investors with an opportunity to support member countries in achieving their development goals.
In this issuance, the World Bank partnered with BNP Paribas and MPS Capital Services, both acting as Joint Lead Managers, to promote socially responsible and sustainable investments in the Italian retail market.
Summary terms (*) | |||||||||||||||||||||
Issuer: | World Bank (International Bank for Reconstruction and Development, IBRD) | ||||||||||||||||||||
Issuer rating: | Aaa / AAA | ||||||||||||||||||||
Specified currency: | United States Dollars (“USD”) | ||||||||||||||||||||
Offer price (minimum purchase amount): | 100% of the specified denomination, i.e. USD 2,000 | ||||||||||||||||||||
Subscription period: | From 3 April 2017 to 28 April 2017 (both dates included) | ||||||||||||||||||||
Issue date: | 5 May 2017 | ||||||||||||||||||||
Maturity date: | 5 May 2027, subject to early redemption | ||||||||||||||||||||
Coupon rate (p.a.): |
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Clearing systems: | Euroclear, Clearstream | ||||||||||||||||||||
Listing: | MOT, EuroMOT segment of Borsa Italiana | ||||||||||||||||||||
ISIN code: | XS1586710698 | ||||||||||||||||||||
Joint lead managers: | BNP Paribas, MPS Capital Services | ||||||||||||||||||||
(*) 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 05/2027 will solely take place on the basis of the Prospectus, the Final Terms and related legal documentation.
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 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: http://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 190,000 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.
MPS Capital Services
MPS Capital Services Banca per le Imprese is the Corporate and Investment Bank of the Montepaschi Group, market leader in trading of Government Securities and one of the major players in corporate finance and in the Italian capital market. It is characterised as a specialised support centre for Corporate bodies, Authorities and Institutions through the offer of specialist lending and advisory products and services, structured in specific integrated business units. MPS Capital Services has confirmed over the years its important presence in its core markets, through participation, with various roles, in important placing operations in the capital market and in the main infrastructural initiatives of public utility in corporate finance.
