World Bank Launches NOK 2.5 Billion 5-year Sustainable Development Bond to Raise Awareness for Water and Ocean Resources | WPN World People News

The World Bank (International Bank for Reconstruction and Development or IBRD, Aaa/AAA) launched its first Sustainable Development Bond in Norwegian krona to raise awareness for water and ocean resources. The NOK 2.5 billion 1.75% bond matures on November 6, 2024. Nordea Bank Abp was the sole underwriter and distributor for the transaction.

Engagement around this World Bank bond highlights the sustainable development theme of water and ocean resources and the challenge of plastic waste pollution in oceans. Including this transaction, the World Bank has issued almost USD 3 billion equivalent through more than thirty Sustainable Development Bonds to raise awareness for clean water, sanitation, and marine protection (Sustainable Development Goals 6 and 14).

Heike Reichelt, Head of Investor Relations and New Products, World Bank Treasury said: “This transaction is part of the World Bank’s initiative to raise awareness for the critical role of water and ocean resources. It shows that there’s growing interest from investors to engage on specific sustainable development goals and that they value the World Bank as an opportunity to invest for impact”.

The World Bank, as the largest multilateral source of financing for ocean and water projects in developing countries, is committed to working with countries to ensure access to safe and clean water and for the sustainable use of ocean and marine resources. This includes preventing pollution from reaching oceans through better waste management.

Kamal Grossard-Amin, Head of Sovereign, Supranational & Agency Origination, Nordea said: “Nordea is very pleased to support the World Bank in their commitment to sustainable development, particularly raising awareness for the need to protect and preserve our planet’s oceans and marine life. The bond received enormous support from the Norwegian investor community, which is unsurprising given that Norway has one of the longest coastlines in the world, and for whom maritime activities and fishing are integral to the society”.

The biggest proportion of investor interest came from bank treasuries (70%), followed by pension funds (13%), private banks (8%), and asset managers (5%). In terms of geographical distribution, 88% was placed with accounts in Nordic countries, with the remainder placed in Switzerland and with other European investors. Key investors involved in the transaction included DNB Treasury, Equinor, and Nordea Investment Management and Treasury.

Reidar Bolme, Group Treasurer, DNB said: “It’s our responsibility to lead the Norwegian investment community in increasing the focus on sustainable investments. We therefore welcome the opportunity to do so whilst also raising awareness towards the crucial need to protect our future water supply. DNB is proud to partner with the World Bank in order to support this initiative”.

Source: World Bank