WASHINGTON, DC, November 27, 2019 –The World Bank (International Bank for Reconstruction and Development, IBRD, rated Aaa/AAA), priced a 20-year DKK 3 billion green bond – its first green bond denominated in Danish kroner. This was also the World Bank’s first issuance in DKK since 1997 and the longest maturity green bond issued by a sovereign/supranational/agency issuer in the market.
The bond carries a coupon of 0.20% per annum and matures on November 15, 2039. Skandinaviska Enskilda Banken AB (SEB) was the lead manager for the transaction.
George Richardson, Director, Capital Markets, World Bank said: “We are pleased to be back in the Danish market with our first DKK-denominated green bond. Investors are looking to connect their investments to development solutions that address climate change and other global challenges that make a difference for people around the world. We appreciate the strong support from Danish investors”.
Christopher Flensborg, Head of Climate and Sustainable Finance, SEB said: “The World Bank has over the last decade established a large number of collaborations with institutional investors to address and support the Sustainable Development Goals – and the World Bank’s Green Bond program has been a cornerstone to establish the current sustainable market platform. The challenges posed by increased pollution, climate stress, and consumption require cooperation across markets, mandates, and sectors, and this transaction is yet another example of how that can be achieved through the financial markets – now with strong support from Danish asset owners.”
The deal received strong support from institutional investors in Denmark and Sweden in including several pension funds – ATP, Danica Pension, PFA Pension, MP Pension, PenSam, AP2 – and Danske Capital.
ATP said: “As a pension fund with liabilities in Danish kroner and being a dedicated green bond investor, ATP highly appreciates the issuance of IBRD’s inaugural DKK green bond”.
PenSam said: “Investing in green bonds is a fine way to support the green transition.
PFA Pension said: "For PFA, it makes sense to invest in World Bank green bonds in order to combine a good risk adjusted return with the need to finance environmental projects, not only at home, but also in the developing part of the world."
With this latest transaction, the World Bank has issued USD 13.7 billion equivalent in 160 green bonds in 22 currencies since its inaugural issue in 2008. World Bank Green Bonds support the financing of projects in member countries that meet specific criteria for low carbon and climate resilient growth, seeking to mitigate climate change or help affected people adapt to it. The types of eligible projects include renewable energy installations, energy efficiency projects, and new technologies in waste management and agriculture that reduce greenhouse gas emissions and help finance the transition to a low carbon economy. They also include financing for forest and watershed management and infrastructure to prevent climate-related flood damage and build climate resilience.
Transaction Summary | |
Issuer: | World Bank (International Bank for Reconstruction and Development, IBRD) |
Issuer rating: | Aaa/AAA |
Amount: | DKK 3 billion |
Pricing date: | November 22, 2019 |
Settlement date: | December 4, 2019 |
Maturity date: | November 15, 2039 |
Coupon: | 0.20% paid annually in arrear |
Denomination: | DKK 10,000 + 10,000 |
Clearing system: | Euroclear/Clearstream |
Lead manager: | Skandinaviska Enskilda Banken AB (publ) |
ISIN: | XS2086462657 |
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 70 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.
Disclaimers
Net proceeds of the bonds described herein are not committed or earmarked for lending to, or financing of, any particular projects or programs and 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.
Contact
Heike Reichelt
Head of Investor Relations and New Products
The World Bank
