“Continued investor interest” in World Bank green bonds as Dutch FMO snaps up €20m

Development bank invests in five-year bonds to help reduce climate change

FMO, the Netherlands’ international development bank with assets of €5.3bn, has invested €20m in World Bank green bonds.

“Sustainability is key to FMO’s strategy. We are delighted to take part in the global environmental initiative alongside the World Bank with our treasury investments,” said Sheila Codamus-Platel, Treasury Officer at FMO (Financierings-Maatschappij voor Ontwikkelingslanden).

“This fits within our mission of working towards the sustainable development of the private sector in Africa, Asia, Eastern Europe and Latin America.” FMO is 51% owned by the Dutch state; it signed up to the United Nations-backed Principles for Responsible Investment earlier this year.“We are grateful for the continued investor interest we are seeing in green bonds issued by the World Bank, and for FMO’s decision to support World Bank’s development activities in the areas of climate change mitigation and adaptation,” said Doris Herrera-Pol, the World Bank’s Global Head of Capital Markets.

The World Bank’s International Bank for Reconstruction and Development (IBRD) issued the bonds for the FMO.

The bonds support the World Bank’s lending to projects tackling climate change in the developing world. It has issued more than $2.3bn equivalent of green bonds through 39 transactions in 15 currencies.

The bonds mature in July 2016 and have a coupon of 2.25% per annum; SEB is the sole underwriter. Link