Great success among Italian investors for the World Bank's bond for sustainable development. The offer period of the World Bank Fixed Rate 1,75% Callable March 2026 bond ended yesterday after three weeks.
The amount raised was equal to 165 million US dollars, a figure which confirms the growing interest of Italian investors for high quality investment products and with the aim of financing sustainability projects. Through this bond, investors had the opportunity to support the efforts of member countries to fight poverty and inequality in many areas, such as, for example, education, health and infrastructure.
For this issue, the World Bank has collaborated with BNP Paribas, as Dealer, and with Banca Akros SpA, as Co-Dealer. The Bond pays fixed six-monthly coupons at an annual rate of 1,75%. Upon maturity, after ten years, the World Bank will repay investors 100% of the capital2 in US dollars. Starting from 29 March 2018, on an annual basis, the bond may be repaid in advance at par by the issuer.
The Bond will be listed on the Italian Stock Exchange (MOT) starting from 29th March 2016 and BNP Paribas will assume the role of liquidity provider.
Arunma Oteh, Vice President and Treasurer of the World Bank, said: “I am very happy with the excellent response from Italian investors to the Bond for Sustainable Development and the message it sends. It demonstrates that investors value investments that secure the long-term future of our planet and protect precious resources for future generations. If we are to achieve the Sustainable Development Goals, it is imperative that each of us proactively seek ways to make an impact. I am delighted that Italian investors have seen this Note as an opportunity for a high quality investment that has a positive impact on society as a whole.”
Pascal Fischer, Head of Global Markets, EMEA for BNP Paribas said: “The success of the World Bank's Bond for Sustainable Development in Italy is a clear example of the growing demand for sustainable investments from our clients around the world. BNP Paribas is delighted to play an important role in contributing to the growth of responsible investment and to strengthen our partnership with the World Bank.”
