Washington, DC, November 17, 2014 – The World Bank (International Bank for Reconstruction and Development, IBRD, rated Aaa/AAA) is pleased to announce the launch of a new investment solution designed for retail investors in Belgium – the Green Growth Bond. By choosing this green bond linked to an equity index, investors can benefit from the potential growth of an equity index and, at the same time, support projects with a positive climate impact financed by the World Bank. This is the first time that such a solution has been launched by the World Bank for retail investors. The World Bank’s Green Growth Bond will be offered to investors in Belgium starting November 17th 2014, at which time all relevant information about the product and distributing banks will be available at www.GreenGrowthBond.com. The World Bank’s Green Growth Bond has been designed to deliver three key objectives for the environmentally conscious investor:
Eco-citizenship: bond proceeds are allocated by the World Bank to support projects aimed at addressing climate change.
Peace of mind: at maturity, investors are entitled to the repayment in US dollars of 100% of their original capital investment by the World Bank (Aaa/AAA)1.
Return on capital: at maturity, investors can potentially earn a redemption premium that is linked to an ethical equity index, made up of 30 European companies which are selected according to sustainability criteria defined by independent organisations.
Green Bonds: Since its first green bond launched in 2008, the World Bank has raised over USD 7 billion through about 75 green bonds in 17 different currencies all over the world. All World Bank green bonds offer investors an opportunity to support environmental solutions through a bond product that benefits from the triple-A credit strength of the World Bank. 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 or help affected people adapt to it. The types of 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. They also include financing for forest and watershed management and infrastructure to prevent climate-related flood damage and build climate resilience.
Equity Index: The World Bank’s Green Growth Bond, which is linked to the Ethical Europe Equity Index, has been designed to deliver long term performance. The index consists of 30 European stocks, selected for inclusion based on an analysis by Vigeo, an independent and well-established Environmental, Social and Governance (ESG) rating agency, and Forum Ethibel, an independent Belgian consulting agency that rates and audits sustainability, ethics, and social responsibility metrics of corporations. The index is owned, calculated and managed by Solactive, a global index provider.
BNP Paribas Corporate and Investment Banking has partnered with the World Bank to develop the “Green Growth Bond”, bringing to bear the bank’s traditional strengths in structured solutions and debt capital markets, and its commitment to drive progress in sustainable and responsible investment solutions.
1. Moody’s/Standard & Poor’s credit ratings as of 31 October 2014.
Transaction Summary (*):
(*) Please see the Prospectus and Final Terms for a detailed description of the Terms and Conditions of the bonds and the related risks with regard to an investment in the bonds, available at www.GreenGrowthBond.com as of the start of the offering period in Belgium.
This article was orginally posted on the World Bank News Room.