By Lisa Kerner
Charlotte, N.C., June 29 – International Bank for Reconstruction and Development (World Bank) announced that its latest sustainable development bond 06/2026 (Aaa/AAA) reached $120 million after a three-week subscription period to Italian retail investors.
The fixed-to-floating rate 10-year bond pays an annual gross coupon at a rate equal to 2.35% per annum for the first year. Thereafter, it pays a floating rate per annum equal to Libor, subject to a 2.35% cap and a floor of zero.
World Bank said it raises funds in the international capital markets to finance sustainable development projects in developing countries in order to improve the living standards, protect the environmental heritage and promote across a range of sectors including among others education, health care and infrastructure.
The bond will be listed on Borsa Italiana (MOT) and BNP Paribas will act as liquidity provider, according to a news release.
BNP Paribas Securities Corp. acted as dealer, and Banca Akros SpA acted as co-dealer.
This is the fourth transaction that the World Bank has issued for Italian retail investors since June 2015, bringing the total raised through those investors to more than $1 billion.
The issuer is based in Washington, D.C.
| Issuer: | International Bank for Reconstruction and Development (World Bank)
|
| Issue: | Sustainable development bond
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| Amount: | $120 million
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| Coupon: | Fixed-to-floating rate; 2.35% for the first year, then at Libor with a cap of 2.35% and a floor of zero
|
| Price: | Par
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| Maturity: | June 28, 2026
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| Distribution: | Italian retail investors
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| Issue date: | June 28, 2016
|
| Dealer: | BNP Paribas Securities Corp.
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| Co-dealer: | Banca Akros SpA
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