06 Nov 2008 14:01

World Bank and SEB partner with Scandinavian Institutional Investors to Finance "Green" Projects

The bond issue is one example of the kind of innovation the World Bank is trying to encourage within its "Strategic Framework for Development and Climate Change," launched earlier this year to help stimulate and coordinate public- and private-sector activity in this area.  The offering is the first time both the World Bank and SEB have offered bonds to raise funds identified to a specific World Bank program.
"We are very pleased to partner with the World Bank for this green bond issue," said Annika Falkengren, President and CEO, SEB. "With this issue we have been able to offer our clients a product through which they can accomplish three things: take a stand towards fighting global warming, support the World Bank and its members in their efforts to fight poverty, and secure a higher return than government securities by investing in the World Bank's Aaa/AAA-rated bonds."
"Tackling climate change is going to take immense resources that will only come from a well-orchestrated flow of public and private finance.  This transaction is an important early effort to show one way in which this can be done.  We hope it demonstrates that private citizens can safely and profitably invest their savings today while also helping provide a better world for their children," said Robert B. Zoellick, President of the World Bank Group.
The first World Bank green bonds are denominated in Swedish kronor (SEK) for a total amount of SEK 2.325 billion and have a maturity of six years. The interest rate payable annually is 0.25 percent above Swedish government bond rates. SEB is the sole lead manager and will offer the bonds to investors through its distribution network.  The bonds responded to demand from a group of Swedish, Norwegian and Danish investors. Credit Suisse International is a senior co-manager and Landesbank Baden-Württemberg is a co-manager for the transaction.
Summary Terms
: International Bank for Reconstruction and Development (IBRD)
Rating: Aaa/AAA
Amount: SEK 2.325 billion
Settlement date: 12/11/2008
Maturity date: 12/11/2014
Issue price: 100,157
Redemption: 100%
Coupon: 3.5%
Denomination: SEK 10,000.00 and integral multiples thereof
Listing: Luxembourg
Clearing system: Euroclear
Sole Lead Manager: SEB
For more information on SEB's commitment to reducing climate change and on the World Bank Green Bond distributed by SEB, please visit www.sebgroup.com.
The World Bank is a global development cooperative owned by its member countries. Its purpose is to help its members achieve equitable and sustainable economic growth in their economies and to find solutions to regional and global problems in economic development and environmental sustainability, all with a view to reducing poverty and improving standards of living. The International Bank for Reconstruction and Development (IBRD), rated Aaa/AAA (Moody's/S&P) is owned by 185 countries. It is the oldest and largest entity in the World Bank Group and provides its members with financing, risk management products, and other financing services, as well as specialized expertise and strategic and convening services requested by its member countries. To fund this activity, IBRD has been issuing debt securities in the international capital markets for 60 years. The World Bank is one of the most recognized and innovative borrowers in the international capital markets. More information about the World Bank and its activities in the capital markets is available on the web at: www.worldbank.org/debtsecurities.
For further information, please contact:
Christopher Flensborg, Coordinator, Capital Markets, SEB, +46 (0)8 5062 31 38, christopher.flensborg@seb.se
Klas Eklund, Senior Economist, Environmental issues, SEB, +46 (0)70 763 80 88, klas.eklund@seb.se
Elisabeth Lennhede, Press Officer, SEB +46 (0)8 763 9916, +46 (0)70 763 99 16, elisabeth.lennhede@seb.se
The World Bank
Doris Herrera-Pol, Global Head of Capital Markets, +1 202 458 0779, dherrerapol@worldbank.org
Roger Morier, Communications Advisor, Sustainable Development, +1 202 473 5675, rmorier@worldbank.org