Finance
First World Bank Sustainable Development Bonds Denominated in Chinese Renminbi and Indian Rupee Listed on the Italian Stock Exchange
The World Bank (International Bank for Reconstruction and Development or “IBRD”, rating Aaa/AAA1) is pleased to announce the issuance of two new Sustainable Development Bonds denominated in Chinese renminbi (CNY) and Indian rupee (INR). These bonds for retail investors in Italy are an opportunity for investors to combine financial objectives with their social and environmental sustainability goals. It marks the first time the World Bank is offering CNY- and INR-denominated bonds for Italian retail investors, listing the bonds on EuroMOT of Borsa Italiana, the Italian Stock Exchange.
The World Bank raises funds in the international capital markets to finance sustainable development projects in bor-rowing member countries. These projects focus on poverty reduction and inclusive growth across a range of sectors including education, health care, agriculture and food security, and essential infrastructure. World Bank Sustainable Development Bonds provide investors with an opportunity to support its member countries in these efforts.
The CNY-denominated sustainable development bond pays a yearly coupon of 2.50% in EUR every year. At maturity investors are entitled to the repayment of 100% of their original capital investment in CNY 2 by the World Bank. The payment at maturity will be made in EUR.
The INR-denominated bond pays a yearly coupon of 5.80% distributed in EUR every year and at maturity investors are entitled to the repayment in INR of 100% of their original capital investment2 by the World Bank. The payment at ma-turity will be made in EUR.
Both bonds will be listed starting on July 22, 2016 on EuroMOT of Borsa Italiana, and BNP Paribas will act as Liquidity Provider.
Further information about the product can be found on the website www.obbligazionisostenibili.org. For these bonds, the World Bank partnered with BNP Paribas, acting as Dealer and Liquidity Provider, to promote socially responsible and sustainable investments for Italian retail investors.
“The World Bank’s new bond offerings provide Italian investors easy access to our Sustainable Development Bonds through the listing on the Italian Stock Exchange. With these bonds, investors can use their money for social good and at the same time do well by diversifying their investments. They also support the development of local currency capital markets,” said Arunma Oteh, Vice President and Treasurer, World Bank.
Transaction Summary *
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Issuer: |
World Bank |
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Issuer rating:
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Aaa /AAA1
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Maturity: |
5 years
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Subscription period:
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July 12, 2016 to July 14, 2016
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Issue date:
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July 22, 2016
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Coupon:
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2.50% p.a. (CNY)
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5.80% p.a. (INR) |
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Coupon payment dates:
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22 July of each year from and including July 22, 2017 to and including the maturity date
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Maturity date:
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July 22, 2021
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Offer price:
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CNY 10,000
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INR 150,000 |
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Listing:
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EuroMOT of Borsa Italiana
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Clearing systems:
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Euroclear, Clearstream
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ISIN:
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XS1442211923 (CNY)
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XS1442212145 (INR) |
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Joint lead managers:
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BNP Pariba
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All payments for the purchase, coupon payments, and principal repayment at maturity are settled in EUR.
(*) Nothing in this document should be construed as a solicitation or offer, legal, tax or other advice, or recommendation to engage in any transaction. The information in this document does not constitute a recommendation of the instruments referred to. It merely provides information and is not intended to be either a recommendation to acquire financial products or an offer or invitation to tender. Any offer of any of the two Sustainable Development Bonds 07/2021 will solely take place on the basis of the Prospectus, the relevant Final Terms and related legal documentations. For a detailed description of the Terms and Conditions of the Sustainable Development Bonds 07/2021 and the related risks with regard to an investment in either Bonds, please see the relevant legal documentation available at www.obbligazionisostenibili.org.
About the World Bank
The World Bank (International Bank for Reconstruction and Development, IBRD), rated Aaa/AAA1 (Moody’s/S&P), is an international organization created in 1944 and the original member of the World Bank Group. It operates as a global development cooperative owned by 189 nations. It provides its members with financing, expertise and coordination services so they can achieve equitable and sustainable economic growth in their national economies and find effective solutions to pressing regional and global economic and environmental problems. The World Bank has two main goals: to end extreme poverty and promote shared prosperity. It seeks to achieve them primarily by providing loans, risk management products, and expertise on development-related disciplines to its borrowing member government clients in middle-income countries and other creditworthy countries, and by coordinating responses to regional and global challenges. It has been issuing sustainable development bonds in the international capital markets for over 60 years to fund its activities that achieve a positive impact. Information on World Bank bonds for investors is available on the World Bank Treasury website:
www.worldbank.org/debtsecurities
About BNP Paribas
BNP Paribas is a leading bank in Europe with an international reach. It has a presence in 75 countries, with more than 189,000 employees, including more than 146,000 in Europe. The Group has key positions in its three main activities: Domestic Markets and International Financial Services (whose retail-banking networks and financial services are covered by Retail Banking & Services) and Corporate & Institutional Banking, which serves two client franchises: corporate clients and institutional investors. The Group helps all its clients (individuals, community associations, entrepreneurs, SMEs, corporate and institutional clients) to realise their projects through solutions spanning financing, investment, savings and protection insurance. In Europe, the Group has four domestic markets (Belgium, France, Italy and Luxembourg) and BNP Paribas Personal Finance is the leader in consumer lending. BNP Paribas is rolling out its integrated retail-banking model in Mediterranean countries, in Turkey, in Eastern Europe and a large network in the western part of the United States. In its Corporate & Institutional Banking and International Financial Services activities, BNP Paribas also enjoys top positions in Europe, a strong presence in the Americas as well as a solid and fast-growing business in Asia-Pacific. For further information visitwww.bnpparibas.com
