World Bank Unveils first bond linked to the SDGs

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As part of the global effort to combat climate change, end poverty and promote equality, the World Bank’s International Bank for Reconstruction and Development (IBRD) has unveiled its first bond linked to the UN Sustainable Development Goals (SDGs).

According to the Bank, the equity-index linked bonds raised a total of €163 million ($173 million) from institutional investors in France and Italy, and the proceeds will be used to support the financing of projects that advance its goals of eliminating extreme poverty.

The projects also aim to reduce environmental impacts, enhance gender equality and public health.

According to UN Deputy Secretary-General, Amina J. Mohammed: “The 2030 Agenda for Sustainable Development is a transformative agenda which aims to make our world more inclusive, peaceful and prosperous.”

The Bank said returns on investments from the bonds will be linked directly to the performance of companies listed in the Solactive Sustainable Development Goals World Index which includes 50 firms who are sustainability-conscious or are recognized in their industries as leaders on socio-environmental issues.

A new innovation, the bonds seek to change structures in the financial markets and, shape consumer/shareholder interests in a sustainable way by focusing on development finance.

Furthermore, the bonds, which were arranged by BNP Paribas, have been developed under the World Bank’s “SDGs Everyone” initiative which provides an innovative solution and new financial model that supports the SDGs.

In addition, The Innovate4Climate, Finance and Markets week will be held in Barcelona at the Fira de Barcelona, on 22-26 May 2017, organised by the World Bank Group. Innovate4Climate will be the global platform uniting leaders from across policy, multilateral, business and finance sectors to create the partnerships needed to unlock the trillions.

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