World Bank targets Italy with new sustainable development bond

The World Bank has issued a sustainable development bond as it looks to help to eradicate poverty and promoting shared prosperity.

The bonds, denominated in US dollars, will be traded from the EuroMOT market of Borsa Italiana on a continuous basis thanks to BNP Paribas, which has partnered with the Bank providing the liquidity.

The USD-denominated Sustainable Development Bond is part of the World Bank’s strategy to widen its presence in Italy – where since 2015 the institution has raised over $555m (€470.92m) through green bonds (linked to an equity index) and sustainable development bonds issued in a range of EM currencies.

The new bond will pay a yearly floating coupon at a fixed annual rate of 3% since inception until maturity on April 2028, time when investors will be entitled to get back 100% of their capital invested.

The World Bank raises funds in the international capital markets with the ethos of supporting the financing of sustainable development projects, focusing on poverty reduction and inclusive growth across a wide range of sectors including education, healthcare, agriculture, food security, and essential infrastructure.

ABOUT THE AUTHOR
Eugenia Jimenez
Eugenia Jiménez speaks Spanish and is Iberia Correspondent for Investment Europe covering Spain & Portugal, as well as assisting with coverage of Italy. She holds a UK NCTJ- accredited Multimedia News Reporting course and studied Journalism at the University of Sevilla. She has worked for local media organisations in Sevilla and Málaga, mainly in broadcasting as a news reporter, among other roles. She has also worked for a local newspaper in Sevilla, reporting on current affairs, local government and culture.

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