Tokyo, September 20, 2019 - The World Bank (International Bank for Reconstruction and Development, IBRD rated Aaa/AAA) launched Sustainable Development Bonds totaling USD 500 million. The Norinchukin Bank, a national-level financial institution for agricultural, fishery and forestry cooperatives in Japan, was the sole investor.
World Bank bonds support the financing of sustainable development projects and programs in member countries. This includes USD 4.6 billion in lending that IBRD is providing to middle-income countries to address food loss and waste from farm to fork, with investments in infrastructure, access to markets and logistics, and waste management.
One-third of all food produced in the world is lost or wasted every year and this results in USD 1 trillion in economic losses per year. The resources needed to produce the food that becomes lost or wasted has a carbon footprint which is eight percent of global emissions annually. And food that is produced, but ultimately never eaten, uses 25 percent of all water used in the agriculture sector. At the same time, more than 800 million people around the world are suffering from hunger.
The Norinchukin Bank’s mission is to support Japan’s agricultural, fisheries and forestry industries. Through this support, the bank contributes to the development of food production and consumption and a better quality of life for the people living in local communities. The Norinchukin Bank also promotes initiatives that address various environmental and social issues including those which help combat food loss and waste.
■World Bank Project Examples
Mexico: Grain Storage and Information for Agricultural Competitiveness
The project will contribute to developing market conditions that enable producers to participate in a storage system that incentivizes productivity, reduces losses through post-harvest management, and facilitates access to financial mechanisms. Activities to improve the storage infrastructure include the construction, rehabilitation, or upgrading of existing grain storage facilities, including collection and trade centers.
IBRD Financing: $120 million
For more information: https://projects.worldbank.org/P160570?lang=en
India: Andhra Pradesh Integrated Irrigation and Agriculture Transformation Project
Agriculture represents 14 percent of India’s national GDP and provides livelihoods for more than 50 percent of the population. Although one of the fastest growing regions in India, Andhra Pradesh is characterized by low agricultural productivity and high vulnerability to weather shocks. Factors reducing productivity include variable rainfall and inadequate management of soil health, lack of knowledge or adoption of climate-resilient technologies and practices, inadequate storage and processing facilities, and inefficient. The project aims to improve irrigation efficiency, promote climate-smart practices, improve post-harvest management, and increase capacity building. Post-harvest management activities comprise upgrades to rural market facilities, including financing cold storage facilities, as well as deploying climate-smart processing, storage, packaging, and handling technologies to reduce losses and add more value. Additional activities will seek to improve access to market information and foster links between actors along the value chain.
IBRD Financing: $172 million
For more information: https://projects.worldbank.org/P160463?lang=en
*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.
*This press release is not an offer for sale of securities of the International Bank for Reconstruction and Development ("IBRD"), also known in the capital markets as "World Bank". Any offering of World Bank securities will take place solely on the basis of the relevant offering documentation including, but not limited to, the prospectus, term sheet and/or final terms, as applicable, prepared by the World Bank or on behalf of the World Bank, and is subject to restrictions under the laws of several countries. World Bank securities may not be offered or sold except in compliance with all such laws.
