The World Bank (International Bank for Reconstruction and Development, IBRD rated Aaa/AAA) issued a USD 28.6 million 5-year Sustainable Development Bond as part of ongoing efforts to raise awareness for the vital role fresh and saltwater resources play for people, livelihoods, and the planet.
Credit Suisse Securities (Europe) Ltd., through its Impact Advisory and Finance Department, acted as the sole manager of the transaction.
World Bank bonds support the financing of sustainable development projects and programs across a range of critical development sectors in member countries. This includes projects designed to promote strong governance of marine and coastal resources to support sustainable fisheries and aquaculture, make coastlines more resilient, establish coastal and marine protected areas, and those which improve solid waste management to reduce pollution in waterways and oceans. This “Blue Economy” approach supports economic growth, social inclusion and the preservation or improvement of livelihoods while at the same time ensuring the environmental sustainability of oceans and coastal areas.
“World Bank bonds provide an opportunity for investors to engage on purpose, impact and the Sustainable Development Goals. We are pleased to partner with Credit Suisse to focus attention on the importance that water conservation and the sustainable use of our oceans and waterways play in development”, said George Richardson, Director of Capital Markets, World Bank.
The World Bank bond forms the collateral for Credit Suisse’s Low Carbon Blue Economy Note, which was placed with Credit Suisse’s private wealth management clients globally.
The Low Carbon Blue Economy Note as collateralized by the World Bank bond was well received and illustrates the desire for private investors to use their investment to engage on critical topics like the Blue Economy.
“Credit Suisse is delighted to partner with the World Bank to highlight the need for investment in one of the most important ecosystems for fighting climate change and creating sustainable livelihoods for billions of people – the ocean value chain. Absorbing approximately 30% of the carbon dioxide created by humans and generating 50% of the world’s oxygen, yet significantly underfunded from a private capital perspective, ocean health is critical. Funding, such as this, supports the World Bank, which in turn supports projects from sustainable fisheries to marine protected areas to ocean waste upcycling and helps us close the funding gap identified by the Sustainable Development Goal 14, "life below water"”, said Marisa Drew, CEO of the Impact Advisory and Finance Department at Credit Suisse.
The World Bank issues US$50-US$60 billion in the global capital markets every year and proceeds of all its bonds support the financing of development programs that are aligned with the Sustainable Development Goals. This includes, for example, projects that are helping to: improve flood management through improved solid waste management in Philippines; preserve and grow fish stocks and related livelihoods in Peru; and improve management of marine areas and strengthen fisheries value chains in Seychelles.
