The International Bank for Reconstruction and Development (IBRD) a subsidiary of the World Bank, has launched a 7-year $208 billion Sustainable Development Bond to engage with investors to raise awareness for water and ocean resources.
The bond is due in November 2026 and Swedbank is acting as sole lead manager for the transaction.
World Bank bonds support the financing of a diverse portfolio of sustainable development projects and programmes including those which protect and preserve fresh and saltwater resources and address marine pollution such as fishing and aquaculture innovation in Peru, sustainable fisheries and marine resources conservation in the Seychelles, and waste management improvements in Indonesia.
Heike Reichelt, head of investor relations and new products, World Bank Treasury, said: “This transaction has provided a valuable opportunity to engage with investors on how the World Bank is working with member countries to tackle a range of pressing development challenges around water.
This includes providing continued access to safe drinking water and addressing degradation of coastal areas and threats to fisheries and oceans that impact societies and our planet. We’re grateful to the investors for their interest in investing for purpose and to Swedbank for the collaboration.”
Linda Lindblad, head of SSA Origination, Swedbank said: “The work of the World Bank is very impressive and equally important. We wanted to highlight an issue that has a global impact and we find that raising awareness for sustainable use of water and oceans is doing just that. The portfolio of projects supported by the World Bank affect everything from what we eat, to the air we breathe”.
Länsförsäkringar AB and Swedbank Robur were among the key institutional investors to participate in the bond transaction.
Kristofer Dreiman, head of sustainable investments, Länsförsäkringar AB said: “This bond by IBRD is a good example, in line with our expectation, regarding combining financial returns and sustainable development impacts. We value in particular the measurable contributions, on a global scale, to SDG 6 “clean water and sanitation” and SDG 11 “sustainable cities and communities.”
Thomas Bäck, Portfolio Manager, Swedbank Robour, said: “Access to clean drinking water and a sustainable way of handling waste water, is essential for people’s health and development all over the world. Investing in the financing of projects focusing on providing clean water and sanitation for all people is very much in line with the vision of Swedbank Robur about being world leading within sustainable value creation.”