Third World Bank Green Bond Issue Raises USD 13...
The World Bank (International Bank for Reconstruction and
Development, rated Aaa/AAA) announced today that its third green bond
issue successfully raised USD 130 million. World Bank green bonds
support projects in client countries that meet specific criteria for
low-carbon development. These bonds are an example of public and
private-sector efforts to raise funds for projects seeking to
mitigate the rise in greenhouse gas emissions or help people in
developing countries affected by climate change.
The transaction was lead managed by SEB. Among the investors who
purchased the bonds were institutions in the US such as the
California State Teachers' Retirement System (CalSTRS), and in
Sweden, the Swedish life insurance provider SEB Trygg Liv, and
Swedish National Pension Funds - AP2 and AP3. The United Nations
Joint Staff Pension Fund (UNJSPF), which had participated in the
inaugural World Bank green bond last year, also invested in the
latest World Bank green bond.
"For us as long-term investors, it is important to find responsible
investments targeted at the global climate challenges. The green
projects supported by the World Bank green bond are an important step
in that direction", says Christina Kusoffsky Hillesöy, Head of
Communication and Sustainable Investments at AP3 (Third Swedish
National Pension Fund).
The World Bank issued its first green bonds in November 2008 for an
amount of SEK 2,325 million. That issue marked the first time the
World Bank had offered bonds to raise funds identified to a specific
World Bank program. Since then the SEK issue has been increased twice
with new investors participating. The World Bank launched its second
green bond issue in April 2009, placing USD 300 million with the
State of California Treasurer's office.
This third green bond transaction brings the total amount raised
through World Bank green bonds to an equivalent of almost USD 800
million.
Warren Evans, Director of the Environment Department at the World
Bank, said "climate action in developing countries - specifically,
mitigation and adaptation initiatives - will require important
financing by the international community, from both public and
private sources. We're pleased to see continued investor support to
what the World Bank is carrying out in conjunction with our country
partners; it's an indication that investors fully understand the
inextricable link between development and climate change. Helping one
clearly helps the other."
"The amounts involved in the negotiations on official climate
financing are very small compared to the investment needs in emerging
markets. Consequently, private financial flows must play the lead
role. But for that to happen, investments must be profitable. The
World Bank green bond provides a good investment and safe return,
while offering investors the opportunity to actually help combat
climate change," said Klas Eklund, senior economist, SEB.
Summary Terms
Amount: USD 130,000,000
Settlement Date: December 4, 2009
Maturity date: December 4, 2013
Issue price: 100.114%
Redemption Amount: 100%
Coupon: 2% per annum
Denomination: USD 1,000
Clearing systems: Euroclear, Clearstream, DTC, Luxembourg
Lead Manager: SEB acting through SEB Enskilda Inc N.Y.
Co-lead manager: Credit Suisse AG
For more information on SEB and the World Bank Green Bonds, please
visit
http://www.sebgroup.com and
http://treasury.worldbank.org/cmd/htm/WorldBankGreenBonds.html.
This press release is not an offer for sale of Notes of the
International Bank for Reconstruction and Development ("IBRD"), also
known in the capital markets as "World Bank". Any offering of the
Notes will be made only by means of a prospectus containing detailed
information that will made available through SEB, the lead manager of
the notes, and Credit Suisse AG, the co-lead manager of the notes,
and is subject to restrictions under the laws of several countries.
Securities may not be offered or sold except in compliance with all
such laws.
SEB is a Northern European financial group serving some 400,000
corporate customers and institutions and five million private
individuals. SEB offers universal banking services in Sweden, Germany
and the three Baltic countries - Estonia, Latvia and Lithuania. It
also has a local presence in the other Nordic countries, Ukraine and
Russia and a global presence through its international network in
leading financial centres. On September 30, 2009, the Group's total
assets amounted to SEK 2,233 billion and its assets under management
totalled SEK 1,295 billion. The SEB Group has about 20,000 employees.
Read more about SEB at www.sebgroup.com.
The World Bank is a global development cooperative owned by its
member countries. Its purpose is to help its members achieve
equitable and sustainable economic growth in their economies and to
find solutions to regional and global problems in economic
development and environmental sustainability, all with a view to
reducing poverty and improving standards of living. The International
Bank for Reconstruction and Development (IBRD), rated Aaa/AAA
(Moody's/S&P) is owned by 186 countries. It is the oldest and largest
entity in the World Bank Group and provides its members with
financing, risk management products, and other financing services, as
well as specialized expertise and strategic and convening services
requested by its member countries. To fund this activity, IBRD has
been issuing World Bank bonds in the international capital markets
for 60 years. The World Bank is one of the most recognized and
innovative borrowers in the international capital markets. More
information about the World Bank and its activities in the capital
markets is available on the web at: www.worldbank.org/debtsecurities.
_____________________________________________
For further information, please contact:
SEB
Christopher Flensborg, Coordinator, Capital Markets, SEB, +46 (0)8
5062 31 38, christopher.flensborg@seb.se
Elisabeth Lennhede, Press Officer, SEB +46 (0)8 763 9916, +46
(0)70 763 99 16, elisabeth.lennhede@seb.se
The World Bank
Jeff Brez, Communications, Sustainable Development, +1 202 458 7628,
jbrez@worldbank.org
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.