Washington, D.C., October 4, 2018 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) has priced a SEK 2.5 billion 5-year bond to support the financing of sustainable development activities around the world. This issuance aims to raise awareness for Sustainable Development Goal 11: Sustainable Cities and Communities. The investors are Skandia, SEB Life & Investment Management, Handelsbanken Fonder, and Church of Sweden.
This transaction is the result of collaboration between IBRD and Swedish Investors for Sustainable Development (SISD), a network of pension funds, asset managers, asset owners and investment companies, facilitated by the Swedish International Development Cooperation Agency or Sida, to explore the role of investors in achieving the Sustainable Development Goals.
"We are pleased to partner with Swedish investors to raise awareness on critical development challenges such as building sustainable cities. The capital markets are an excellent way to engage investors and the private sector to achieve the Sustainable Development Goals, especially as cities face growing populations, strained infrastructure and mounting demands for services.” says Arunma Oteh, World Bank Vice President and Treasurer.
“At Skandia we constantly work to generate long-term financial growth for our clients through promoting sustainable companies and positive progress in the society at large. Creating this SDG bond in collaboration with the World Bank is a great example of how this can be achieved and we hope to inspire other investors.” says Frans Lindelöw, Chief Executive Officer, Skandia.
“In cooperation with other investors and together with the World Bank, we have made it possible for an investment combining an interesting return profile aligned with a clear purpose for our customers. This investment will especially promote SDG 11, Sustainable Cities and Communities, an urgent topic considering the rapid urbanization around the world.” says Martin Lundvall, Head of Core Fixed Income, SEB Investment Management.
“Within Handelsbanken Fonder we have a strong focus on finding investment opportunities that align with the 2030 Agenda. We are happy to have been part of this investor group that has worked in close collaboration with the World Bank to promote investments in SDG 11.” says Carl Cederschiöld, Chief Executive Officer, Handelsbanken Fonder.
“Making cities more sustainable is critical if we are to limit global warming to two degrees, which the world agreed upon in Paris in 2015. As a long-term investor, we see huge investment potential in the SDGs and in greening the cities. This promising collaboration is one step towards that goal.” says Gunnela Hahn, Head of Sustainable Investment, Church of Sweden.
“It is ground-breaking that asset owners and asset managers within the SISD network cooperate in this way to finance sustainable development in the world. We hope to give inspiration for more innovative solutions for today's major challenges. Sustainable Development Goal 11, Sustainable Cities, is an important goal, a great deal of the challenges and solutions of the future lie here." says Carin Jämtin, Director-General, Sida.
The World Bank issues between US$50-60 billion in Sustainable Development Bonds in the global capital markets every year, and proceeds of the bonds are used to support the financing of development programs that are aligned with its mission to end extreme poverty and boost shared prosperity and the Sustainable Development Goals. This includes, for example, projects that are helping to build liveable and sustainable cities amid unprecedented urban growth. World Bank projects are helping to finance improvements in water supply and sanitation, waste management, transport infrastructure and services, energy supply, and address challenges from climate change.
Transaction Summary | |
Issuer | World Bank (International Bank for Reconstruction and Development, IBRD) |
Rating | Aaa/AAA |
Amount | SEK 2.5 billion |
Settlement date | 10 October 2018 |
Maturity date | 10 October 2023 |
Issue price | 99.811% |
Coupon | 0.500% paid annually in arrear, calculated on a 30/360 day count basis |
Listing | Luxembourg Stock Exchange |
Lead manager | SEB |
The net proceeds from the sale of the bonds are used by the World Bank to finance sustainable development projects and programs in the World Bank’s member countries without being committed or earmarked for lending to, or financing of, any particular projects or programs. Returns on the bonds are not linked to the performance of any particular project or program.
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 is the original member of the World Bank Group and operates as a global development cooperative owned by 189 nations.
The World Bank provides loans, guarantees, risk management products, and advisory services to middle-income and other creditworthy countries to support the Sustainable Development Goals and to end extreme poverty and promote shared prosperity. It also provides leadership to coordinate regional and global responses to development challenges.
The World Bank has been issuing sustainable development bonds in the international capital markets for over 70 years to fund programs and activities that achieve a positive impact. More information on World Bank bonds is available at www.worldbank.org/debtsecurities.
