World Bank Issues a 5 million USD Callable Step-Up Green Bond
Today, the World Bank (International Bank for Reconstruction and Development, IBRD, rated Aaa/AAA), announced a USD 5 million 10-year callable step-up green bond. This green bond was lead managed by J.P. Morgan (JPM) which has underwritten $565 million in IBRD green bonds to date.
With today’s issue, the World Bank has now raised over USD 6.7 billion equivalent through 70 green bonds in 17 currencies, since its inaugural green bond in 2008.
World Bank Green Bonds offer an opportunity for investors to support environmental solutions through a high grade fixed income investment. World Bank Green Bonds benefit from the triple-A credit strength of the World Bank and provide comparable returns to other World Bank bonds. World Bank Green Bonds raise funds for projects seeking to mitigate climate change or help affected people adapt to it. Examples of the types of projects supported by World Bank Green Bonds 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.
Issuer: World Bank (International Bank for Reconstruction and Development, IBRD)
Issuer rating: Aaa/AAA
Amount: USD 5 million
Settlement date: September 26, 2014
Maturity date: September 26, 2024
Issue price: 100%
Coupon: Step Up Schedule; Years 1-5: 2.25%, Year 6: 3%, Year 7: 4%, Year 8: 5%, Year 9: 6.50%, Year 10: 8%
Denomination: USD 1,000 and integral multiples of USD 1,000 in excess thereof
Clearing system: DTC
Lead manager: J.P. Morgan (JPM)
About the World Bank
The World Bank (International Bank for Reconstruction and Development, IBRD), rated Aaa/AAA (Moody’s/S&P), is an international organization created in 1944. It operates as a global development cooperative owned by 188 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 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 bonds for investors is available on the World Bank Treasury website: (www.worldbank.org/debtsecurities).
For more information about World Bank Green Bonds, see: http://treasury.worldbank.org/cmd/htm/WorldBankGreenBonds.html
About J.P. Morgan’s Corporate & Investment Bank
J.P. Morgan’s Corporate & Investment Bank is a global leader across banking, markets and investor services. The world’s most important corporations, governments and institutions entrust us with their business in more than 100 countries. With $21.7 trillion of assets under custody and $403 billion in deposits, the Corporate & Investment Bank provides strategic advice, raises capital, manages risk and extends liquidity in markets around the world.
Further information about J.P. Morgan is available at www.jpmorgan.com.
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