World Bank plans five-year sustainable bonds tied to Solactive index

By Susanna Moon

Chicago, Dec. 4 – International Bank for Reconstruction and Development (World Bank) plans to price notes (Aaa/AAA) due Dec. 28, 2023 in Italy linked to the Solactive Human Capital World MV index.

The coupon will be fixed at 4% for the first year. After that, the notes will pay a contingent coupon at an annualized rate of 4% for each day that the index closes at or above its initial level.

Proceeds will be used to support the financing of World Bank activities aimed at eradicating poverty and promoting shared prosperity.

After the placement, the bonds will be listed on the Mercato Obbligazionario Telematico of Borsa Italiana.

BNP Paribas is the dealer.

The placement will run from Dec. 3 to Dec. 20.

The notes will price on Dec. 21 and settle on Dec. 28.

The bond is linked to the Solactive Human Capital World MV index, which selects companies based on two key factors: fair work such as diversity, responsible labor relations, fair remuneration and safe working conditions and societal development, including human rights, fair taxes and responsible supply chain.

The five-year bonds will be denominated in dollars and offered to Italian retail investors.

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