The World Bank recently issued their first set of bonds linked directly to companies advancing the Sustainable Development Goals. This set of 17 global development priorities was formulated by a global coalition of countries to end poverty, protect the planet, and ensure prosperity for all, and include specific targets to be achieved by 2030.
The bonds raised a total of EUR163 million from institutional investors in France and Italy, and were arranged by BNP Paribas. Returns on the bonds are linked to the stock performance of the 50 companies in the Solactive Sustainable Development Goals World Index. These are companies that dedicate at least one fifth of their activities to sustainable products or are recognized leaders in their industries on socially and environmentally sustainable issues, as determined by ESG research expert Vigeo Eiris. The bonds are backed by the World Bank’s AAA credit rating.
The proceeds of the bonds will be used to finance World Bank projects that contribute to eliminating extreme poverty and boosting shared prosperity. A sample project provides access to healthcare to rural communities in Panama. The bonds allow the World Bank to leverage capital markets to expand its work towards achieving the Sustainable Development Goals.
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