The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) priced a 4.75-year NOK 5 billion floating rate Sustainable Development Bond due June 2027 while engaging with investors on the World Bank’s strategy, projects, and programs that support developing countries in the sustainable management of biodiversity and ecosystem services and integrating nature in development.

Jorge Familiar, Vice President and Treasurer, World Bank, said, “Nature-based solutions are an essential element in addressing the climate crisis and the World Bank is a key financier of biodiversity efforts in developing countries. Investors are increasing their focus on biodiversity to support a more resilient and sustainable future, and we are grateful to have the opportunity to engage with them on this important topic.”

Biodiversity is critical to sustainable development, climate resilience, and human well-being. Animal, plant, and marine biodiversity comprise the “natural capital” that keeps our ecosystems functional and economies productive. Half of the world’s GDP depends on biodiversity and ecosystem services which include things like fresh water and timber, carbon storage and sequestration, natural landscapes that support tourism, and soil formation. With a steep decline in natural capital in the last 50 years, at least one million species are threatened with extinction. An estimated US$700 billion/year is needed to reverse the loss of biodiversity and ecosystem services by 2030.

The World Bank is one of the largest international financiers of nature and works with partners to mobilize private capital and performance-based financing to deploy solutions across the globe. The World Bank’s integrated ecosystem-economy model sheds light on development risks associated with nature loss and helps identify effective policy responses as part of the World Bank’s contribution to the COP15 of the UN Convention on Biological Diversity in December 2022.

See related article: World Bank Group Announces International Low-Carbon Hydrogen Partnership

Investor Quotes

Kamal Grossard-Amin – Head of SSA, Nordea, said, “The World Bank once again demonstrated its position as a market leader in the sustainability space through their latest Norwegian krone benchmark. While becoming the largest NOK Sovereign, Supranational and Agency (SSA) transaction of 2022, this deal is a testament to IBRD’s strong following in the Nordic markets and also demonstrates the commitment of both the issuer and the Norwegian investor base to transition to a sustainable society and to raise awareness for biodiversity – a topic central to sustainability. Nordea is extremely proud to have played a role in IBRD’s latest success and we thank the issuer for the vote of confidence.”

The bond was issued under the World Bank’s Sustainable Development Bond Framework.

Source: World Bank