The World Bank announced in November 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 6 November 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 30 Sustainable Development Bonds to raise awareness for clean water, sanitation, and marine protection (Sustainable Development Goals 6 and 14).
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,
…Heike Reichelt, Head of Investor Relations and New Products, World Bank Treasury said.
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, including the prevention of pollution from reaching oceans through better waste management.
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.
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,
…Reidar Bolme, Group Treasurer, DNB said.
See also:
- World Bank report calls for urgent action to tackle marine pollution in Caribbean
- World Bank to boost offshore wind in developing countries
