The World Bank has unveiled Sustainable Development Bonds linked to the Solactive Human Capital World MV Index aimed at Italian investors.
The five-year bonds, denominated in US dollars, will support the financing of World Bank activities aimed at eradicating poverty and promoting shared wellbeing.
The issuance highlights the importance of human capital, a key driver of economic growth.
The bond is linked to the Solactive Human Capital World MV Index, which selects companies based on two key factors: fair work (including diversity, responsible labour relations, fair remuneration, and safe working conditions) and societal development (including human rights, fair taxes, and responsible supply chain).
Following the placement phase, from the 3rd to the 20th of December, the bonds will be listed on the Mercato Obbligazionario Telematico (MOT) of the Italian Stock Exchange, where they will be traded on an ongoing basis.
BNP Paribas will provide liquidity as market maker and the minimum purchase amount is $2,000.
Michele Montefiori, Senior Financial Officer, World Bank Treasury, said: “We are pleased to launch Sustainable Development Bonds to highlight the importance of investing in human capital. The bonds are part of the World Bank’s strategy of developing new solutions that offer a sound investment proposition while also creating social value. We hope these bonds will expand our strong partnership with Italian investors as we strive to create a better future for all.”
The World Bank raises funds in the international capital markets to support the financing of sustainable development projects in borrowing member countries. These projects focus on poverty reduction and equitable and shared growth across a range of sectors including education, healthcare, agriculture, food security, and essential infrastructure. World Bank Sustainable Development Bonds provide investors with an opportunity to support member countries in achieving their development goals.
The World Bank recently announced the Human Capital Project, an effort to accelerate more and better investments in people, to create a world in which all children arrive in school well-nourished and ready to learn; can expect to learn in the classroom; and are able to enter the job market as healthy, skilled and productive adults.
Further information about the bonds can be found on the website www.obbligazionisostenibili.org.