World Bank plans green growth bonds in Italy, sells $30 million in U.S.

By Susanna Moon

Chicago, May 19 – World Bank said it launched the green growth bond 07/2023, which is a green bond linked to an equity index, for retail investors in Italy.

Interest on the bonds will be fixed for the first two years, with payment at the end of the first and second year. After that, it will be linked to the Ethical Europe Equity index.

The payout at maturity will be par in dollars.

Proceeds will be used by the World Bank to support the financing of projects aimed at addressing climate change.

The objective of the index is to obtain solid performance over the long term, the press release noted.

The Ethical Europe Equity index consists of 30 European stocks selected for inclusion based on an analysis by Vigeo, an independent environmental, social and governance rating agency, and Forum Ethibel, an independent Belgian consulting agency.

The index is owned, calculated and managed by Solactive.

BNP Paribas Corporate and Institutional Banking worked with the World Bank to develop the Green Growth Bond 07/2023, the release said.

U.S. green growth bonds

World Bank said it issued almost $30 million of green growth bonds linked to Ethical Europe Equity index to investors in the United States.

The subscription period for the debt securities closed last week, running for four weeks beginning April 20.

The launch follows similar green growth bond offerings in Europe and Asia, according to a separate press release by World Bank.

BNP Paribas Securities Corp. worked with the World Bank to develop the notes and has also underwritten the issue.

Since its first green bond in 2008, the World Bank has raised more than $8.2 billion through about 95 green bonds in 18 different currencies.

World Bank green bonds support the financing of projects in member countries that meet criteria for low carbon and climate resilient growth, “seeking to mitigate climate change or help affected people adapt to it,” the release noted.

Projects 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, the release said.

They also include financing for forest and watershed management and infrastructure to prevent climate-related flood damage and build climate resilience, the bank said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.