The World Bank is pleased to announce the launch of the Green Growth Bond 05/2023, its second Green Bond for retail investors that is linked to the Ethical European Equity Index. This product will allow investors to benefit from the growth potential of an equity index while at the same time, support projects with a positive impact on climate change, financed by the World Bank.
Offered to the public across different countries in Europe, the Green Growth Bond 05/2023 has an 8-year maturity and the subscription period will run from March 10th to April 23rd 2015. All relevant information about the product is available at www.GreenGrowthBond.com.
This initiative follows the recent success of the World Bank’s first Green Growth Bond which was offered to retail investors in Belgium and Luxembourg. The transaction closed on January 7th 2015 with a total subscription amount of USD 91 million, making it the largest public offer subscription for a non-Euro denominated equity index-linked bond across Belgium and Luxembourg in 2014.
The World Bank’s Green Growth Bond 05/2023 has been designed to deliver three key objectives for the environmentally conscious investor:
- Eco-citizenship: bond proceeds are used by the World Bank to support the financing of 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 more than USD 8 billion through over 80 green bonds in 18 different currencies. 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 05/2023, 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 association 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 Institutional Banking has partnered with the World Bank to develop the “Green Growth Bond 05/2023”, bringing to bear the bank’s traditional strengths in structured solutions and debt capital markets, as well as its strong commitment to drive progress through sustainable and responsible investment solutions.
Read more at The World Bank