Investors including Aegon, Sweden’s AP2, SNS Asset Management, BlackRock and Pictet (full list below) have snapped up the first ever World Bank green bond denominated in euros.
The bank’s International Bank for Reconstruction and Development (IBRD) launched a €550m, three-year fixed rate green bond, its inaugural green benchmark in this currency and its second green bond of the year.
“With today’s issue, the World Bank continues to attract new investors and expand the investor base for the green bond market, marking another important milestone,” it said. It has now issued a total of $5.3bn equivalent in green bonds since the first issue in 2008.
All the investors, the World Bank said, bought the bonds due to their interest in supporting climate-friendly projects within their investment mandates.
Forty-two percent of the bonds were placed with bank treasuries and corporates, 22% with asset managers, 19% with insurance companies, 9% with official institutions, and 8% with pension funds. Ninety percent went to European investors and 10% to American ones.
Crédit Agricole CIB, Morgan Stanley and SEB were joint-lead managers.“We are grateful for the support from investors, banks, issuers and others who are working together to help expand this market and work towards a goal that benefits all of us,” said World Bank Treasurer Madelyn Antoncic.
“SNS AM is very pleased to participate in this particular World Bank deal to continue to assist its clients like Zwitserleven in their search for responsible investments,” said Erik Jan van Bergen, chief investment officer at SNS Asset Management.
Caisse Centrale de Reassurance
SEB Asset Management
SNS Asset Management
Zurich Insurance Group