Washington, D.C., April 9, 2024 — The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today issued a 5-year US$150 million green bond maturing in April 2029. Proceeds of the green bond will support the financing of projects which contribute to low-carbon and climate resilient growth in World Bank member countries. The sole investor in the bond is the State of California. CastleOak Securities, L.P. is the sole lead manager of the transaction.
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 and help affected people adapt to it. The types of eligible projects include renewable energy and energy efficiency, sustainable transport, new technologies in waste management, climate-smart agriculture, sustainable forest landscape, watershed management, and infrastructure projects that prevent climate-related flood damage and build climate resilience.
In 2009, the California State Treasurer’s Office became the first investor ever in a U.S. dollar-denominated green bond, as the sole investor in the first USD green bond that was issued by the World Bank. Since then, California has regularly invested in World Bank green bonds.
“We are delighted to continue our longstanding collaboration with the State of California as it pursues its climate goals through its investments.” said Jorge Familiar, Vice President and Treasurer, World Bank. The World Bank is the largest multilateral funder of climate investments in developing countries. Our analytical work, financing, and technical assistance is supporting member countries to build climate-smart economies that are green, resilient, and inclusive in line with our vision to create a world free of poverty on a livable planet.”
“California has a long history of putting its money where its mouth is. This green bond checks two boxes, helping the state earn a return on its investments and supporting projects that address the global climate crisis.” said Fiona Ma, California State Treasurer.
“We are excited to support this successful transaction,” said Itai Benosh, Managing Director, Agency & Supranational Capital Markets at CastleOak Securities. “This deal combines two of CastleOak’s focus areas: community support and creating value by facilitating direct issuer-investor discussions. We congratulate the World Bank and the State of California for achieving their mutual goals with this new green bond issue.”
In November 2008, the World Bank issued the market’s first green bond which created the blueprint for today’s labeled bond market and the Green, Social, and Sustainability Bond Principles coordinated by the International Capital Market Association (ICMA). The World Bank was also the first to commit to investor reporting on the use of green bond proceeds and expected project impacts, setting the standard for the market, and forming the basis for the ICMA-coordinated Principles. To date, the World Bank has raised almost US$eq. 20 billion in over 200 green bonds and more than 20 currencies. The World Bank labels all its other bonds as Sustainable Development Bonds as it supports its member countries to integrate climate considerations into all development activities as they tackle global challenges like water security and climate adaptation, energy transition, efficiency, and access, as well as forests for development and biodiversity.
Transaction Summary
Issuer: | World Bank (International Bank for Reconstruction and Development, IBRD) |
Issuer rating: | Aaa /AAA (Moody's/S&P) |
Amount: | USD 150 million |
Settlement date: | April 9, 2024 |
Maturity date: | April 2, 2029 |
Issue price: | 100% |
Issue yield: | 4.38% |
Denomination: | USD 1,000 |
Coupon: | 4.38% per annum |
Listing: | Not Applicable |
CUSIP: | 45906M5E7 |
Clearing system: | DTC |
Lead manager: | CastleOak Securities, L.P. |
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 in line with its mission to end extreme poverty and boost shared prosperity on a livable planet. It also provides leadership to coordinate regional and global responses to development challenges. The World Bank has been issuing 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.
The World Bank is a founding member of the Green, Social, and Sustainability Bond Principles coordinated by ICMA. World Bank Green Bonds are aligned with the Green Bond Principles. All other Word Bank bonds, Sustainable Development Bonds, are aligned to the Sustainability Bond Guidelines also coordinated by ICMA. 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 (IBRD) Impact Report describes how the World Bank projects support the financing of sustainable development projects and programs in member countries in line with the World Bank vision to create a world free of poverty on a livable planet.
Disclaimers
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.
Net proceeds of the securities described herein are not committed or earmarked for lending to, or financing of, any particular projects or programs. Payments on the securities described herein are not funded by any projects or programs.
Contact
Heike Reichelt,
Head of Investor Relations and Sustainable Finance, World Bank Treasury,
debtsecurities@worldbank.org
