WASHINGTON, D.C., March 16, 2022 - The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today issued a Sustainable Development Bond while raising awareness for the importance of investing in women and girls to accelerate economic development, reduce poverty and build sustainable societies around the world. A key investor in the 1.5 billion CNH bond was Gavekal Capital Limited, and the sole lead manager was HSBC.
Gender equality is a priority for the World Bank. The World Bank’s year-long Accelerate Equality initiative is exploring the important progress made and lessons learned to close gender gaps globally over the last 10 years. For example, maternal mortality has decreased by around 10 percent, and girls’ enrollment in secondary school has increased by 5 percent. The Women, Business and the Law index shows that women’s economic rights have improved, and there are now more women than ever before in national parliaments across the globe.
However, progress has been slow in many important areas. Female labor force participation rates are often low, significant gender wage gaps persist, and, in many countries, women are still clustered into sectors and occupations typically associated with lower profits, absence of work contracts, and lack of protection. In addition, multiple crises, including COVID-19, the effects of climate change, increased commodity prices and in some cases, conflict, has only compounded the challenges for women and girls, exacerbating barriers to participating in the economy and public life, and risks reversing decades of progress made. The World Bank’s Gender Strategy recognizes that stronger and better resourced efforts are needed to address gender inequalities and works to close these gaps.
Christine Cheung, Head of Asian Fixed Income, Gavekal, said, “Given Gavekal’s focus on responsible investment, we are pleased to support the World Bank’s sustainable development activities around the globe by investing in this transaction and highlighting gender equality. We look forward to working with the World Bank and other high-quality issuers to encourage other ESG-related bonds in the future.”
Heike Reichelt, Head of Investor Relations and Sustainable Finance, World Bank, said, “We are encouraged by the growth of the sustainable finance market with more investors focused on investments that help make a positive difference. Making progress to achieve gender equity is a core development objective and is central to the World Bank’s own goals of ending extreme poverty and boosting shared prosperity. We appreciate the continued investor support for this important topic.”
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.
World Bank bonds support the financing of programs that further the Sustainable Development Goals (SDGs). World Bank bonds are aligned with the Sustainability Bond Guidelines published by the International Capital Market Association and as such support the financing of a combination of green and social, i.e., “sustainable development” projects, programs and activities in IBRD member countries as described in the World Bank Sustainable Development Bond Framework. The World Bank is also a member of the Executive Committee of the Green Bond, Social Bond, and Sustainability Bond Principles. A key priority for the World Bank’s capital markets’ engagement is building strategic partnerships with investors to promote the importance of private sector financing in sustainable development. The World Bank’s Sustainable Development Bond Impact Report describes how the World Bank engages with investors on the SDGs and raises awareness for specific development challenges.
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 described herein 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. The World Bank Sustainable Development Bond Framework and the information set forth therein are not a part of, or incorporated by reference into, the offering documentation.
Contact
Heike Reichelt, Head of Investor Relations and Sustainable Finance
The World Bank Treasury
debtsecurities@worldbank.org
