WASHINGTON, November 15, 2022 — The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) priced a 4.75-year NOK 5 billion floating rate Sustainable Development Bond due June 2027 while engaging with investors on the World Bank’s strategy, projects, and programs that support developing countries in the sustainable management of biodiversity and ecosystem services and integrating nature in development.
The deal was placed with asset managers, banks, bank treasuries, and official institutions in Norway. Nordea Bank Abp acted as lead manager for the transaction.
Jorge Familiar, Vice President and Treasurer, World Bank, said,“Nature-based solutions are an essential element in addressing the climate crisis and the World Bank is a key financier of biodiversity efforts in developing countries. Investors are increasing their focus on biodiversity to support a more resilient and sustainable future, and we are grateful to have the opportunity to engage with them on this important topic.”
Biodiversity is critical to sustainable development, climate resilience, and human well-being. Animal, plant, and marine biodiversity comprise the "natural capital" that keeps our ecosystems functional and economies productive. Half of the world’s GDP depends on biodiversity and ecosystem services which include things like fresh water and timber, carbon storage and sequestration, natural landscapes that support tourism, and soil formation. With a steep decline in natural capital in the last 50 years, at least one million species are threatened with extinction. An estimated US$700 billion/year is needed to reverse the loss of biodiversity and ecosystem services by 2030.
The World Bank is one of the largest international financiers of nature and works with partners to mobilize private capital and performance-based financing to deploy solutions across the globe. The World Bank’s integrated ecosystem-economy model sheds light on development risks associated with nature loss and helps identify effective policy responses as part of the World Bank’s contribution to the COP15 of the UN Convention on Biological Diversity in December 2022.
Kristine Lien, Portfolio Manager, Kommunalbanken, said,“The need for preserving ecosystems and biodiversity is fundamental to ensure sustainable development, climate resilience, health, and prosperity. World Bank is doing very important work in combating climate change and biodiversity loss and KBN is pleased to support this. We must all contribute and work together to ensure that we leave this planet in healthy shape for our future generations.”
Thomas Colliander, Finance Manager Treasury, Sparebanken Vest, said,"Sparebanken Vest is proud to support the World Bank in yet another Sustainable Development Bond, in this case to raise awareness for biodiversity. At Sparebanken Vest we are also extremely ESG-focused, and investments like this therefore represents both a safe investment and align well with the bank’s own long-term ESG strategy".
Kamal Grossard-Amin – Head of SSA, Nordea, said, “The World Bank once again demonstrated its position as a market leader in the sustainability space through their latest Norwegian krone benchmark. While becoming the largest NOK Sovereign, Supranational and Agency (SSA) transaction of 2022, this deal is a testament to IBRD’s strong following in the Nordic markets and also demonstrates the commitment of both the issuer and the Norwegian investor base to transition to a sustainable society and to raise awareness for biodiversity - a topic central to sustainability. Nordea is extremely proud to have played a role in IBRD’s latest success and we thank the issuer for the vote of confidence.”
The bond was issued under the World Bank’s Sustainable Development Bond Framework.
Transaction Summary
Issuer: | World Bank (International Bank for Reconstruction and Development, IBRD) |
Issuer rating: | Aaa /AAA (Moody’s/S&P) |
Amount: | NOK 5,000,000,000 |
Settlement date: | 28 November 2022 |
Maturity date: | 28 June 2027 |
Issue price: | 103.635% |
Denomination: | NOK 10,000 |
Coupon: | 3m Nibor + 100bps |
ISIN: | XS2558956483 |
Clearing system: | Euroclear / Clearstream |
Lead manager: | Nordea Bank Abp |
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.
This press release contains or references links to websites operated by third parties ("Third Party Websites"). These links are provided for information purposes only. Third Party Websites are not under control of IBRD. IBRD is not responsible for the content of, or links contained in, any Third Party Website, and the inclusion of such links does not imply IBRD endorses, recommends, or accepts any responsibility for the content of such Third Party Website.
Contact
Heike Reichelt, World Bank Treasury
debtsecurities@worldbank.org
