Washington, D.C, September 27, 2019 —The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) launched a 3-year Canadian dollar Sustainable Development Bond as a part of a campaign to raise awareness for the critical need to protect and sustain water and ocean resources. Fiera Capital was the sole investor in this transaction which was purchased for the Fiera Multi-Strategy Income fund. The transaction was priced on September 26, 2019. JP Morgan was the sole underwriter and distributor of the bond.
This is the latest example of the World Bank’s engagement with investors around specific development challenges and the Sustainable Development Goals (SDGs). Through this engagement, the World Bank and Fiera Capital are raising awareness for SDG 6, Clean Water and Sanitation, and SDG 14, Life Below Water.
The World Bank, as the largest multilateral funder for ocean and water projects in developing countries, is committed to working with countries to ensure access to safe and clean water and for the sustainable use of ocean and marine resources. This includes avoiding pollution reaching oceans through better waste management.
“World Bank Sustainable Development Bonds are an opportunity to engage with investors as they integrate environmental, social and governance criteria in their investment decisions and focus on impact. We are pleased to collaborate with Fiera Capital to communicate the urgency and focus needed to protect water and ocean resources to sustain health, provide food and energy, manage the environment, and create jobs,” said Heike Reichelt, Head of World Bank’s Investor Relations and New Products.
“The World Bank continues to be a global leader in the impact investing space. Fiera Capital is proud to partner with them in a bond to highlight projects to meet the Sustainable Development Goals 6 and 14; as water is a critical aspect of human life and oceans are the planet’s life support system. We are proud to be part of something bigger than ourselves that has a direct positive impact,” said François Bourdon, Global CIO, Fiera Capital.
The World Bank issues USD 50 to USD 60 billion annually in bonds for sustainable development. All World Bank bonds support the financing of programs that support the Sustainable Development Goals. World Bank bonds are consistent with the sustainability bond guidelines published by the International Capital Markets Association. A key priority for the World Bank’s engagement in the capital markets is to build strategic partnerships with investors to raise awareness for the role of private sector financing in sustainable development.
Transaction Summary* | |
Issuer | World Bank (International Bank for Reconstruction and Development, IBRD) |
Issuer Rating | Aaa/AAA |
Amount | CAD 15,000,000 |
Settlement Date | October 3, 2019 |
Maturity Date | October 3, 2022 |
Issue Price | 100% |
Coupon (per annum) | 1.53 per cent. p.a. |
Coupon Payment Dates | April 3 and October 3 of each year |
Listing | None |
Clearing System | Euroclear/Clearstream |
Lead Manager | JP Morgan |
ISIN | XS2059903646 |
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 bonds of the International Bank for Reconstruction and Development ("IBRD"), also known in the capital markets as "World Bank". Any offering of the bonds will be made only by means of a prospectus containing detailed information that will be made available through the joint lead managers and is subject to restrictions under the laws of several countries. Bonds may not be offered or sold except in compliance with all such laws.
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. These bonds range from structured notes to benchmark-sized issuances. More information on World Bank bonds is available at https://treasury.worldbank.org.
Contact: Heike Reichelt, debtsecurities@worldbank.org
