17. PARTNERSHIPS

Western Asset Management Company Invests in World Bank Sustainable Development Bond and Highlights Support for Nutrition – World Bank Group

Written by Amanda

Western Asset Management Company Invests in World Bank Sustainable Development Bond and Highlights Support for Nutrition  World Bank Group




WASHINGTON, D.C., January 24, 2022 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) issued a 3-year, 100 million Peruvian sol-denominated Sustainable Development Bond due January 2025 while engaging with investors on the importance of good nutrition to build human capital. Western Asset Management Company was the sole investor in the transaction on behalf of client assets. Bank of America Securities was the underwriter of the transaction.

World Bank bonds support the financing of sustainable development projects and programs in member countries across a range of sectors in line with its mission to end extreme poverty and promote shared prosperity. This includes US$6 billion in projects, of which US$1.5 billion are in IBRD countries, helping to improve nutrition. Good nutrition is critical to improving human capital — a central driver of sustainable growth and poverty reduction. However, COVID-19 and other shocks are expected to have pushed 155 million people into acute food insecurity, with 28 million at risk of famine. Millions of children will also fall into malnutrition due to pandemic related service disruptions and not achieve their full growth potential. There is an urgent need to ensure that everyone has access to the knowledge, resources, and services needed to achieve optimal nutrition.

Heike Reichelt, Head of Investor Relations and Sustainable Finance, said, “The World Bank works with its member countries to help them achieve their development goals. Combatting malnutrition in its various forms is central to building a sustainable future and recognized in Sustainable Development Goal (SDG) 2, which aims to end hunger, achieve food security and improved nutrition, and promote sustainable agriculture. As the situation continues to worsen during COVID, we especially value investor efforts to raise awareness for the nutrition crisis and thank Western Asset Management Company for their investment and support of the World Bank’s sustainable development activities.”

Kevin Ritter, Portfolio Manager, Western Asset, said, “We are excited to partner with the World Bank on this opportunity. We find attractive the income profile and potential total return of the Peruvian sol-denominated issuance. Additionally, effective human capital development is an important input in our sovereign ESG framework, given its material impact on the sustainability of economic growth over the medium and long term. Through its support of all SDGs, including human capital development across member countries—via nutrition programs targeting SDG2 (“Zero Hunger”)—the World Bank’s Sustainable Bond Program provides investors with a unique opportunity to support the financing of sustainability-enhancing development programs, which we believe at the same time can enable our clients to meet their investment objectives.”

About the World Bank
The World Bank (International Bank for Reconstruction and Development, IBRD), rated Aaa/AAA (Moody’s/S&P), is an international organization. Created in 1944, it is the original member of the World Bank Group and operates as a global development cooperative owned by 189 nations. The World Bank provides loans, guarantees, risk management products, and advisory services to middle-income and other creditworthy countries to support the Sustainable Development Goals and to end extreme poverty and promote shared prosperity. It also provides leadership to coordinate regional and global responses to development challenges. The World Bank has been issuing sustainable development bonds in the international capital markets for over 70 years to fund programs and activities that achieve a positive impact. More information on World Bank bonds is available at www.worldbank.org/debtsecurities.

World Bank bonds support the financing of programs that further the Sustainable Development Goals (SDGs). World Bank bonds are aligned with the Sustainability Bond Guidelines published by the International Capital Market Association and as such support the financing of a combination of green and social, i.e., “sustainable development” projects, programs and activities in IBRD member countries as described in the World Bank Sustainable Development Bond Framework. The World Bank is also a member of the Executive Committee of the Green Bond, Social Bond, and Sustainability Bond Principles. A key priority for the World Bank’s capital markets’ engagement is building strategic partnerships with investors to promote the importance of private sector financing in sustainable development. The World Bank’s Sustainable Development Bond Impact Report describes how the World Bank engages with investors on the SDGs and raises awareness for specific development challenges.

Disclaimers
Net proceeds of the bonds described herein are not committed or earmarked for lending to, or financing of, any particular projects or programs, and returns on the bonds described herein are not linked to the performance of any particular project or program.

This press release is not an offer for sale of securities of the International Bank for Reconstruction and Development (“IBRD”), also known in the capital markets as “World Bank”. Any offering of World Bank securities will take place solely on the basis of the relevant offering documentation including, but not limited to, the prospectus, term sheet and/or final terms, as applicable, prepared by the World Bank or on behalf of the World Bank, and is subject to restrictions under the laws of several countries. World Bank securities may not be offered or sold except in compliance with all such laws. The World Bank Sustainable Development Bond Framework and the information set forth therein are not a part of, or incorporated by reference into, the offering documentation.

This press release contains or references links to websites operated by third parties (“Third Party Websites”). These links are provided for information purposes only. Third Party Websites are not under control of IBRD.  IBRD is not responsible for the content of, or links contained in, any Third Party Website, and the inclusion of such links does not imply IBRD endorses, recommends, or accepts any responsibility for the content of such Third Party Website. 

Contact
Heike Reichelt
Head of Investor Relations and Sustainable Finance
World Bank Treasury
debtsecurities@worldbank.org
 

Source: worldbank.org

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Amanda

Hi there, I am Amanda and I work as an editor at impactinvesting.ai;  if you are interested in my services, please reach me at amanda.impactinvesting.ai

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