World Bank launches Sustainable Development Bond to Focus Attention on Improving the Health and Nutrition of Women, Children and Adolescents
The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) has issued a CAD 60 million 10-year Eurobond that raises funds for its sustainable development activities around the world. Japan Post Insurance was the sole investor in this transaction.
It is Japan Post Insurance’s management philosophy to be a trustworthy institution for people that is always close at hand and endeavoring to protect their well-being. Its management policy states, "We actively contribute to health promotion, environmental protection, and the development of local communities and society as a whole." Japan Post Insurance is also addressing challenges related to ESG (Environmental, Social and Governance) issues through its asset management strategy and purchasing World Bank Sustainable Development Bonds is one of those activities. Japan Post Insurance will continue to fulfill its social responsibility by investing in instruments that not only have a positive social impact but also improve investment profitability through product diversification with appropriate risk management.
The World Bank issues around USDeq. 40 billion in Sustainable Development Bonds in the global capital markets every year, and proceeds of all its bond support development programs that are aligned with its mission to end extreme poverty and boost shared prosperity and the Sustainable Development Goals. This includes, for example, projects that are improving the health and nutrition of pregnant women and children under the age of two in Indonesia, and improving the chronic malnutrition of indigenous people with an emphasis on infants and small children in Guatemala.
Examples of projects supported by World Bank Sustainable Development Bonds
The project examples below are for illustrative purposes only and no assurance can be provided that disbursements for projects with these specific characteristics will be made by the World Bank during the lifetime of the bond. World Bank bonds investors do not take individual project risk.
INDONESIA: INVESTING IN NUTRITION AND EARLY YEARS PROJECT
Purpose: Improving the health and nutrition of pregnant women and children under age 2
Expected Results (include):
- More than 6 million pregnant women and 14 million children under age 2 receiving health, nutrition, water and sanitation services
- 28 million parents of children under 2 benefiting from improved access to water and sanitation, nutritious food, and parenting counselling sessions
IBRD Financing: $400 million + $20 million grant
Development Challenge
Indonesia is committed to expanding access to services that reduce stunting—chronic malnutrition—among children ages 0-5. Despite this commitment, stunting still affects 37 percent of people in the country due to various challenges including poor quality of primary health care and insufficient availability of essential services at the community level.
Project Description
The World Bank and the Global Financing Facility are supporting the government to scale up its stunting reduction efforts, including through interventions on a country-wide scale to improve access to health, nutrition, water and sanitation services, and early childhood development programs. The focus is on pregnant women, children under age 2, and their parents. To improve quality and availability of health, nutrition, water and sanitation services, the project will support the government to strengthen human resources and expand delivery systems across national, district and community level programs, with a strong focus on results, evidence-based allocation, and use of data for accountability. This transformational project will launch in 100 districts in 2018, scaling up to all 514 districts across the country by 2021. These efforts across the various sectors affecting health and stunting outcomes help the government of Indonesia make an effective investment for pregnant women and young children to lead healthy and more productive lives.
GUATEMALA: CRECER SANO NUTRITION AND HEALTH PROJECT
Purpose: To improve the chronic malnutrition of indigenous people, with an emphasis on those in the first 1,000 days of their lives.
Expected Results (include):
- Delivering essential health, nutrition and population services to 680,000 people, including:
- 400,000 children under age 5 receiving immunizations
- 280,000 women and children under age 5 receiving basic nutrition services
- Training 2,400 health personnel
- Constructing, renovating and/or equipping 154 health facilities
- Serving 80,000 families with new or rehabilitated water systems
IBRD Financing: $100 million + $9 million grant
Development Challenge
Guatemala has made significant progress in health in the last 25 years, but maternal mortality and chronic malnutrition remain high. Guatemala’s chronic malnutrition rates are the highest in Latin America and among the highest in the world, affecting its people and their prospects, and as a consequence, its growth and development potential—the cost of malnutrition in 2004 represented 11.4 percent of GDP in Guatemala. Quality of care is a challenge, driven by a shortage of health workers and other limitations.
Project Description
The World Bank and the Global Financing Facility are supporting the government in implementing its national strategy to prevent malnutrition, particularly among indigenous pregnant women and children under age 2. The project focuses on providing quality nutrition and health services to these mothers and children; promoting behavioral change in families and communities; improving access to safe drinking water and sanitation; and coordinating these efforts to come together to improve nutrition and health outcomes. The project uses financing tied to achievement of results to promote use of health services and strengthen the country’s conditional cash transfer program for pregnant women and children.
Source: World Bank
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