Privalto, a branch of BNP Paribas, has been mandated by the World Bank for the exclusive distribution of its green bond, Green Growth Bond 05/2023, in France, Luxembourg, Switzerland and Monaco.
The World Bank, which is rated AAA, has issued $300m (€283.2m) bonds with a eight-year maturity. The bond’s offer price is set at $1,000 (€944).
The proceeds of the bond are used by the World Bank to support projects aimed at addressing climate change.
Investors will be repaid at minimum 100% of their original capital when at the maturity end on 12 May 2023. A potential redemption premium could be added as the bonds are linked to the performance of the Ethical Europe Equity index.
The Ethical Europe Equity index is gathering stocks from 30 European companies selected on criterias including ESG and low volatility. Since its inception on 16 April 2013, it has outperformed Euro Stoxx 50 and Stoxx Europe 600 indexes.
The subscription period will end on 23 April 2015.
Doris Herrera-Pol, director and head of Global Capital Markets at the World Bank, said : “Green bonds are building an engaged investor base to finance low-carbon development.
“Green Growth Bonds represent a further step in the development of the green bond market because it reaches retail investors seeking to benefit from the financial performance of a sustainable equity index, while supporting climate-focused activities in World Bank member countries.”