By Susanna Moon
Chicago, March 9 – World Bank (International Bank for Reconstruction and Development) (Aaa/AAA/) priced €163.6 million of bonds linked to the Solactive Sustainable Development Goals World RC 8 EUR index in two tranches at par, according to a term sheet.
The bank sold €106.8 million of zero-coupon bonds due 2032 with a payout at maturity of par plus the average index return, with a floor of par. The average index return will be the quotient equal to the average index level minus the initial index level divided by the initial index level average equal to the average of the closing levels of the index on the annual observation dates from years 10 to 15.
In another tranche, the bank issued €56.8 million of bonds due 2037 with an initial coupon of 1.2% for the first 10 years and then the coupon payments will be linked to the index return for the next 10 years. The payout at maturity will be par. The average index level will be the average of the closing levels of the index on the five monthly observation dates starting from settlement.
BNP Paribas is the lead manager for each issue.
The global development financing cooperative is based in Washington, D.C.
| Issuer: | World Bank (International Bank for Reconstruction and Development)
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| Amount: | €163.6 million
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| Description: | Green bonds
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| Lead manager: | BNP Paribas
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| Trade date: | March 9
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| Settlement date: | March 21
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| Ratings: | Moody's: Aaa
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| S&P: AAA
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| 15-year notes
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| Amount: | €106.8 million
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| Underlying index: | Solactive Sustainable Development Goals World RC 8 EUR Index
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| Maturity: | March 22, 2032
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| Coupon: | 0%
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| Price: | Par
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| Payout: | Par plus average index return
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| 20-year notes
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| Amount: | €56.8 million
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| Underlying issue: | Solactive Sustainable Development Goals World RC 8 EUR Index
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| Maturity: | March 23, 2037
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| Coupon: | 1.2% for the first 10 years; after that, coupon payments equal to average index return, floor of zero
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| Price: | Par
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| Payout: | Par
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