New York, Jan. 2 – The World Bank (International Bank for Reconstruction and Development, or IBRD) priced $88,370,200 of Green Growth Bonds linked to the Ethical Europe Equity index.
The bonds were developed through a partnership with BNP Paribas Corporate and Investment Banking.
They were launched to retail investors in Belgium on Nov. 17. The offer period closed on Dec. 30 and the bonds will be issued on Jan. 12.
Investors can benefit from the potential growth of an equity index while supporting World Bank-financed projects that have a positive climate impact, according to a press release at the time of the launch.
The bond’s proceeds are allocated to support projects aimed at addressing climate change. Investors are entitled to the repayment at maturity of 100% of their original investment in dollars, plus a potential redemption premium that is linked to the Ethical Europe Equity index. The index consists of 30 European stocks that are selected by Vigeo, an independent environmental, social and governance rating agency, and Forum Ethibel, an independent Belgian consulting agency that rates and audits sustainability, ethics and social responsibility metrics of corporations.
According to the release, IBRD’s roughly 75 green bond offerings, which have raised $7 billion since 2008, support the funding of projects in member countries that meet specific criteria for low-carbon and climate-resilient growth, seeking to mitigate climate change or help affected people adapt to it. Eligible projects include renewable energy installations, energy efficiency projects and new technologies in waste management and agriculture that reduce greenhouse gas emissions and help finance the transition to a low-carbon economy. Other projects include forest and watershed management and infrastructure to prevent climate-related flood damage and build climate resilience.
| Issuer: | World Bank (International Bank for Reconstruction and Development)
|
| Issue: | Green Growth Bond
|
| Amount: | $88,370,200
|
| Underlying index: | Ethical Europe Equity index
|
| Maturity date: | Jan. 12, 2022
|
| Price: | 102
|
| Coupon: | 0%
|
| Payout at maturity: | Par plus redemption premium, less any fees or taxes
|
| Redemption premium: | Average of closing levels of index on each monthly observation date, floor of zero
|
| Observation dates: | Monthly, beginning July 6, 2020 and ending Jan. 5, 2022
|
| Pricing date: | Nov. 14
|
| Issue date: | Jan. 12
|
|
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
