WORLD BANK BONDS FOR

SustainableDevelopment
Investor Newsletter | December 2021

Inside:Green, Resilient and Inclusive
Recovery | 2
Impact Report | 22021 Funding Summary & KeyTransactions | 3
Mainstreaming Climate Action | 4
Raising Awareness for the SDGs | 4
Other News and Resources | 5

Inventor Relations & Sustainable Finance | The World Bank Treasury
E debtsecurities@worldbank.org
T +1 (202) 477-2880 W treasury.worldbank.org
1818 H Street, N.W. MSN C7-710 Washington DC 20433 USA

SUSTAINABLE DEVELOPMENT BONDS

Who We Are
The World Bank Treasury serves as treasury for both the World Bank (InternationalBank for Reconstruction and Development, IBRD) and the International Development
Association (IDA).1 Both are members of the World Bank Group.2

Green, Resilient, and Inclusive Recovery
IBRD deployed US$46 billion and IDA US$53 billion, to fight the health,economic, and social impacts of the pandemic from April 2020 to June 2021.
The World Bank continues to work with countries to develop and implement
their COVID crisis response and recovery while mainstreaming climate action indevelopment strategies.

In September 2021, the World Bank launched an initiative to issue US$eq.10 billion, ultimately
raising US$12 billion, in Sustainable Development Bonds while highlighting the urgency tointegrate climate change considerations in all activities and to highlight the World Bank’s approachto mainstreaming climate action. The updated World Bank Group Climate Change Action Plan,
explains how the World Bank helps countries integrate climate change into development strategies
and apply climate financing to achieve the most positive impact. The World Bank screens 100% ofprojects for climate and disaster risks and in fiscal year (FY) 2021, 95% of IBRD projects included
climate components accounting for one-third of all financing.

IBRD Lending Highlights
In FY21 (July 1, 2020-June 30, 2021), IBRD mobilizedrecord lending volumes: US$31 billion in newcommitments and US$24 billion disbursements.
New commitments are supporting the financing ofsustainable development activities through 125 newprojects in middle income countries.

$31 billion 125

projects

FY21 IBRD Lending by Region
in US$ billions

Africa2.0South Asia

6.8

East Asia &Pacific

3.7
4.6

Middle East& North Africa

Europe &Central Asia

4.0
9.5

Latin America

projects withdirected
95% ofclimate
33% ofto financing
componentsclimate action

Impact Report
Sustainable Development Bonds & Green Bonds
The FY20 World Bank Impact Report covers all World Bank (IBRD) bond issuance and the entire portfolioof World Bank financed projects and programs. It looks at achieved and expected results from the project
portfolio.3 To support IBRD’s holistic approach to sustainable development, reporting on the World Bank’s
Green Bond project portfolio is for the first time included in the 2020 Impact Report alongside the reportingon the Sustainable Development Bond project portfolio.

1Information about IDA’s funding program can be found at: https://treasury.worldbank.org/en/about/unit/treasury/ida

2

The “World Bank” refers to IBRD. The World Bank Group consists of five organizations: International Bank for Reconstruction and Development, InternationalDevelopment Association, International Finance Corporation, Multilateral Investment Guarantee Agency and International Centre for Settlement of Investment Disputes.
3 Net proceeds of World Bank bonds are not committed or earmarked for lending to, or financing of, any particular projects or programs, and returns on World Bank
bonds are not linked to the performance of any particular project or program.

2			WORLD BANK BONDS FOR SUSTAINABLE DEVELOPMENT | INVESTOR NEWSLETTER			DECEMBER 2021

PROMOTING SUSTAINABLE CAPITAL MARKETSWorld Bank Funding Summary
In FY21, IBRD drew on its triple-A credit rating and strong standing in the markets
to raise US$eq.68 billion to support the financing of the World Bank’s development
activities, including clients’ response to the COVID-19 pandemic and increasing resilienceto the effects of climate change. IBRD plans to raise US$eq.50-55 billion for the FY22
funding program ending June 30, 2022.

Key Transactions

Annual Issuance
Structured / Risk Transfer Notes
Other / Plain Vanilla Bonds
Benchmark / Global Bonds

Extending Maturities

In FY21, IBRD issued a EUR 2 billion 40-year Sustainable
Development Bond—the first in the tenor. In the US dollar market,IBRD issued a US$5 billion 10-year Sustainable Development Bond.
The extended maturities help align IBRD’s funding with its long-termsustainable development programs in its member countries.

80

US$70
60
5040Developing LIBOR Alternatives

3020100

FY17

FY18

FY19

FY20

FY21

FY20 Breakdown by Currency
Other
15%
68%
EUR
GBP

USD

12%
5%

In February 2021, IBRD issued a US$600 million 10-year floating ratebond—the longest maturity floating rate benchmark to date for theSecured Overnight Financing Rate (SOFR). This transaction supports
the development of the SOFR market, boosting alternatives to theUS-dollar London Inter-Bank Offered Rate (LIBOR), and helps ensure
the efficient functioning of the global financial system.

Setting a New Record in the Kauri Market

The NZ$1.5 billion 5-year benchmark due Nov. 2026 was the largest
non-government bond issued in the New Zealand dollar-market.

Building Resilience to Natural Disasters

Jamaica became the first Caribbean country and small island state
to independently sponsor a catastrophe bond. The US$185 million
catastrophe bond provides Jamaica with financial protection against
losses from named storm events for three hurricane seasons endingin December 2023.

Using Financial Innovation to Accelerate
COVID-19 Support
FY20 Breakdown by Investor
Europe,Middle East,and Africa

31%

28%

Asia

The World Bank supported United Nations Children’s Fund(UNICEF)’s activities to address the pandemic’s impact on children
through IBRD’s issuance of a US$100 million five-year bond. Theissuance frontloads an amount equivalent to half of the total
proceeds of the bond, US$50 million, to UNICEF to support its
pandemic response programs for children around the world overthe 5-year period.

More transactions
41%3			Americas

WORLD BANK BONDS FOR SUSTAINABLE DEVELOPMENT | INVESTOR NEWSLETTER			DECEMBER 2021

PROMOTING SUSTAINABLE CAPITAL MARKETS

Mainstreaming
Climate Action
In FY21, the World Bank Group’s climate
finance totaled over US$26 billion, it’slargest year of climate finance ever
(25% above FY20, which also exceededtargets).
The updated Climate Change ActionPlan for 2021-2025 aims to integrate
climate and development goals andcommits 35% of World Bank Groupfinancing to climate, on average, overthe next five years, with at least 50% ofWorld Bank climate finance supportingadaptation.
By July 1, 2023, the World Bank willalign its financing with the goals of theParis Agreement, while helping client
countries meet their Paris commitments.

Listen to The
Development Podcast
to learn more about theWorld Bank’s Climate
Change Action Plan

Green Bonds
UpdateIn FY21, the World Bank issued US$1.6
billion in green bonds, bringing its
total issuance since the inception ofthe green bond market to over US$16
billion in 185 green bonds and 23
currencies. As of June 30, 2021, there
were approx. US$eq.8 billion in WorldBank Green bonds outstanding.
Key Transactions
Responding to investor demand, IBRD
issued an SEK 2 billion 8-year green
bond and AU$274 million and NZ$241
million green bonds to support thefinancing of low carbon and climate
resilient growth in IBRD member
countries.

4			Raising Awarenessfor the SDGs
World Bank Sustainable Development Bonds
raise awareness for certain development
challenges and SDGs, using World Bank projects
as examples. Below are examples of themes
and SDGs highlighted, including a selection oftransactions executed in 2021 by IBRD. All SDBs
issued while raising awareness for specific themesor SDGs follow the World Bank’s Sustainable
Development Bond Framework.
Nutrition
10-year AU$130 million Sustainable Development Bondissued while highlighting the importance of good nutrition
to build human capital.
Gender Equality
CA$1.5 billion 5-year benchmark, NOK 5 billion 5-year
floating rate benchmark, CA$25 million 5-year Sustainable
Development Bond, and NOK and SEK denominatedSustainable Development Bonds issued while raisingawareness for the World Bank’s strategy, projects andprograms that focus on gender equality, highlighting thedisproportionate impacts that COVID-19 has on women.
Clean Water and Marine Resources
COP 37 billion 5-year Sustainable Development Bondand a EUR 200 million 30-year callable bond issued
while raising awareness for the vital role of the world’s
freshwater and marine resources and the importance ofaddressing water and ocean pollution.
Sustainable Cities & Communities
US$185 million catastrophe bond provides the Governmentof Jamaica with financial protection against losses fromnamed storm events for three hurricane seasons ending inDecember 2023.
Responsible Production & Consumption
CNH 500 million 2-year Sustainable Development Bondissued while engaging with investors to raise awarenessfor the importance of combatting food loss and waste.
Climate Action
EUR 2 billion 25-year benchmark, dual tranche AU$800
million kangaroo bonds, US$5 billion 10-year benchmark
and a US$2 Billion SOFR Index-Linked Sustainable
Development Bond issued as part of the World Bank’s
initiative to issue Sustainable Development Bonds whilehighlighting the urgency of mainstreaming climate action.

WORLD BANK BONDS FOR SUSTAINABLE DEVELOPMENT | INVESTOR NEWSLETTER			DECEMBER 2021

PROMOTING SUSTAINABLE CAPITAL MARKETSIDA Update
IDA’s funding program
doubled in FY21 toalmost US$eq.10 billion.
For more information
on IDA’s funding program please visit:https://treasury.worldbank.org/en/about/unit/treasury/ida

Frameworks for Issuing Sustainable
Development Bonds
IBRD and IDA published Sustainable Developement Bond
Framework in 2021. The frameworks for IBRD and IDA provide
investors with information on how IBRD and IDA bonds support
sustainable developement, including examples of the types ofprojects and programs that each institutions’ bond proceeds
support through the financing of loans to member countries.

Finding IBRD & IDA Bonds on Market
Platforms
IBRD Sustainable Development Bonds & Green
Bonds and IDA Sustainable Development Bonds
are:• Aligned with the Sustainability Bond Guidelines or Green Bond
Principles• Tagged as “sustainability bonds” or “green bonds” on Bloomberg• Displayed on the Luxembourg Green Exchange

AWARDSEVENTS & PUBLICATIONS

GlobalCapital

CMDportal• Most Innovative SSA Issuer• Most Impressive SSA
MTN Issuer• Most Impressive
Supranational FundingOfficer, Andrea Dore

• Best ESG Bond Issuer 2021
• Best GBP Bond Issuer 2021
• Top Deal 2021:
NOK 5 billion ESG bondKangaNews• Kauri Bond Deal of theYear—NZ$1.5 billion 2.875%
November 2026

• Bloomberg Live, Canadian Fixed Income Conference 2021 andSEB NextGen Finance podcast: Heike Reichelt speaks aboutsustainable finance• Kanga News, SSAs Lead by Example: Andrea Dore talks aboutmarket developments and the pandemic• Environmental Finance Global Developments for GSSS BondsConference and Swedbank Annual ESG Conference: ColleenKeenan talks about how IBRD bonds are contributing to asustainable recovery• Institutional ESG Investment North America Summit 2021: ScottCantor talks about the importance of mainstreaming climate
considerations into all financial decision making• Sustainabonds, “World Bank connects investors with impact amidCovid-19”, July 2021
• The International Debt Capital Markets Handbook 2022, 25thEd., “The appeal of fixed income markets in China for foreign
investors”, Euromoney• ESGInvesting, “What You Need to Know About Sustainable
Development Bonds”, 20212022 Summer Internship
Global Recruitment Program
The World Bank Treasury is recruiting globally for
its Summer Internship Program. College students
interested in working at the nexus of finance,development, and impact can apply until January
2, 2022.
Learn more at:https://treasury.worldbank.org/en/about/unit/
treasury/about/careers

About the World Bank: The World Bank (International Bank for Reconstruction and Development, IBRD), rated Aaa/AAA (Moody’s/S&P) operates as a global development cooperative owned by
189 member countries. The World Bank has two main goals: to end extreme poverty and promote shared prosperity. It provides its members with financing, expertise and coordination services so they
can achieve equitable and sustainable economic growth in their national economies and find effective solutions to pressing regional and global economic and environmental problems.
Disclaimer: This investor update has been prepared by the World Bank (International Bank for Reconstruction and Development, IBRD) for information purposes only, and the IBRD makes norepresentation, warranty, or assurance of any kind, express or implied, as to the accuracy or completeness of any of the information contained herein. This newsletter may include information relating
to certain IBRD securities. Any such information is provided only for general informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy any IBRD securities. The
securities mentioned herein may not be eligible for sale in certain jurisdictions or to certain persons.

Inventor Relations & Sustainable Finance | The World Bank Treasury
E debtsecurities@worldbank.org
T +1 (202) 477-2880 W treasury.worldbank.org
1818 H Street, N.W. MSN C7-710 Washington DC 20433 USA