WORLD BANK BONDS FOR

SustainableDevelopment
Investor Newsletter | December 2022

Inside:Responding to Overlapping Crises | 2Impact Report | 22022 Funding Summary & KeyTransactions | 3Raising Awareness for SDGs | 4
A Focus on Biodiversity | 4
Other News & Awards | 5

INVESTOR RELATIONS & SUSTAINABLE FINANCE, Capital Markets Department, 1818 H Street, NW Washington, DC
20433 USA E debtsecurities@worldbank.org T +1 (202) 477-2880 W treasury.worldbank.org

SUSTAINABLE DEVELOPMENT BONDS

Who We Are: World Bank Treasury
The World Bank Treasury manages the issuance programs for both the International Bank for Reconstruction andDevelopment (IBRD) and the International Development Association (IDA)1. This newsletter is focused on IBRD bondissuance. IBRD provides loans, guarantees, and advisory services to member countries to support sustainabledevelopment. IBRD has been issuing bonds in the international capital markets for over 70 years to support lending inline with the World Bank Group’s2 twin goals of ending extreme poverty and boosting shared prosperity.

Responding to Overlapping Crises
IBRD’s financing supports sustainable development activities inits member countries. In fiscal year 2022 (July 1, 2021 - June 30,2022), this included efforts to tackle overlapping crises thatdeveloping countries are facing — from war, surging food andenergy prices, to the effects of climate change. These shocks
have had both a deep direct human and economic impact aswell as long-term adverse spillovers that threaten to reverse
decades of economic gains.

IBRD Lending Highlights

38%

of financing directed
to climate action

90%

Lingering COVID
pandemic

Commodity
shocks & foodinsecurity

Wars &persistentfragility

IBRD Lending by Region

FY22, US$33 billion (commitments)

In FY22, IBRD provided $33 billion in new commitments, thehighest annual amount in a decade, and $28 billion in loan
disbursements to support the financing of sustainable
development activities in middle income countries.

$33 billion 136

Impacts ofclimate change

Eastern and SouthernAfrica
Western and
14% 9% 1% Central Africa

South Asia
Middle Eastand North
13%Africa

projectsof projects withclimate components

Latin
Americaand theCaribbean

28%

17%

18%

East Asiaand PacificEuropeandCentralAsia

World Bank Impact Report
The 2021 Impact Report was published in June 2022. The
report covers both IBRD Sustainable Development Bondsand Green Bonds and highlights the results achieved byIBRD-financed project over the fiscal year that ended June30, 2021 along with bond issuance, commitment, andallocation figures3 .
12
32Information about IDA’s funding program can be found at: https://treasury.worldbank.org/en/about/unit/treasury/ida
The World Bank Group consists of five organizations: International Bank for Reconstruction and Development, International Development Association, International Finance Corporation,
Multilateral Investment Guarantee Agency and International Centre for Settlement of Investment Disputes.
Net proceeds of World Bank bonds are not committed or earmarked for lending to, or financing of, any particular projects or programs.

WORLD BANK BONDS FOR SUSTAINABLE DEVELOPMENT | INVESTOR NEWSLETTERDECEMBER 2022

SUSTAINABLE DEVELOPMENT BONDS

PROMOTING SUSTAINABLE CAPITAL MARKETSWorld Bank Funding Summary
In FY22, IBRD drew on its triple-A credit rating and strong standing in the markets to raise US$eq.41 billion
to support sustainable development activities in member countries. IBRD plans to raise US$eq.40-45 billion
for the FY23 funding program ending June 30, 2023.

Key Transactions & Milestones

Annual Issuance

In March 2022, The World Bank supported South Africa’s
efforts the critically endangered black rhino species throughthe issuance of a five-year US$150 million Wildlife
Conservation Bond (WCB). The WCB is a first of its kind,outcome-based bond that links investment returns to project
outcomes. As well as directly supporting South Africa’s
biodiversity effort, the WCB contributes to the country’s
economy by attracting tourists and creating jobs for localcommunities.

USD Billions

Wildlife Conservation Bond Supports
Biodiversity in South Africa

World Bank’s Bond Payments Mobilize Private
Sector to Reduce Methane Emissions

In FY22, the World Bank made a bond payment worth $3.2
million as part of the repayment of bonds issued inconnection with the Pilot Auction Facility for Methane andClimate Change Mitigation. The payment supports thereduction of methane emissions at landfill project sites in
Brazil and Malaysia, representing 1.6 million tons worth ofeligible emission reductions.

Offering Floating Rate and Fixed Rate Bonds

In September 2022, IBRD offered a dual tranche benchmark
combining a 4-year SOFR-linked and 7-year fixed rate for thefirst time. By offering SOFR-index linked and fixed rate
tranches at the same time, IBRD was able to reach a wider
range of globally diverse investors and raise US$4.5 billion.
It was the first time an issuer in the Sovereign, Supranationaland Agency (SSA) market offered both a floating and fixed
rate tranche simultaneously.

FY22 Issuance by Currency
Other

21%

EUR

USD

13%

56%

10%
GBP

FY22 Investors by Region

Largest SSA Benchmarks

In 2022, IBRD priced the largest Sovereign, Supranational,and Agency (SSA) benchmark transaction in three markets:
NOK, GBP and CAD. The CAD 1.5 billion Sustainable
Development Bond raised awareness for the World Bank’sstrategy, projects and programs that focus on strengthening
health systems. The NOK 5 billion raised awareness for theWorld Bank’s biodiversity and ecosystem services projects
and programs. The GBP 1.5 billion was IBRD’s firsttransaction of 2022.

Asia
Europe,Middle
East, andAfrica

41%

48%
11%

AmericasMore transactions
3

WORLD BANK BONDS FOR SUSTAINABLE DEVELOPMENT | INVESTOR NEWSLETTERDECEMBER 2022

SUSTAINABLE DEVELOPMENT BONDS

Raising Awarenessfor the SDGs
World Bank Sustainable Development Bonds raiseawareness for certain development challenges andSDGs, using World Bank projects as examples4. Beloware examples of themes and SDGs highlighted,
including a selection of transactions executed in FY22
under the World Bank’s Sustainable Development
Bond Framework.
Nutrition
3-year 100 million Peruvian sol-denominatedSustainable Development Bond engages investors
on the importance of good nutrition to build humancapital.
Good Health and Wellbeing
5-year CAD 1.5 billion Sustainable Development
Bond highlights health and COVID-19 response.
Gender Equality
CNH 1.5 billion Sustainable Development Bondraises awareness for the importance of investing inwomen and girls to accelerate economic
development.
Sustainable Cities and Communities
AU$50 million Sustainable Development Bondraises awareness for the importance of road safety
in developing countries.
Life on Land
5-year US$150 million bond contributes toprotecting and increasing black rhino populationsin the Addo Elephant National Park and the Great
Fish River Nature Reserve in South Africa.
Climate Action
8-year AUD 516 million SustainableDevelopment Bond supports holistic approach toclimate action.

PROMOTING SUSTAINABLE CAPITAL MARKETS

Focus on Biodiversity
The World Bank is engaging withinvestors on its support for biodiversity
and ecosystem services. This includes
the financing of projects that improvebiodiversity and integrating biodiversity
considerations across operations andsectors while working with countries tovalue nature as an asset. IBRD issued a10-year A$315 million Sustainable
Development Bond raising awareness forWorld Bank biodiversity conservation
efforts. It was purchased by a group ofJapanese investors including Fukoku
Mutual Life Insurance Company and Meiji
Yasuda Life Insurance Company. The
World Bank also issued a NOK5 billion
floating rate note for Norwegian investors,
while highlighting biodiversity.

Green Bonds Update
In FY22, the World Bank issued US$1.6
billion in green bonds, bringing its total
issuance since the inception of thegreen bond market to over US$18
billion in 207 green bonds and 25
currencies. As of June 30, 2022, there
were approximately US$eq. 9 billion inWorld Bank Green bonds outstanding.
Responding to investor demand, IBRD
issued a 6-year SEK 4 billion green
bond and highlighted how the WorldBank is supporting the financing of low
carbon and climate resilient growth inIBRD member countries.

Promoting Models for Sustainable CapitalMarkets

In October 2022, the World Bank and the Stockholm Environment Institute(SEI) published a methodology for SDG mapping. This methodology is theresult of a three-year collaboration made possible with the support of theWorld Bank Group’s SDG Partnership Fund and contributes to the WorldBank’s effort to build models for transparency and disclosure to promotesustainable capital markets.
4Net proceeds of the bonds described herein are not committed or earmarked for lending to, or financing of, any projects or programs, and returns on the bonds described herein are not linked to theperformance of any particular project or program.

4WORLD BANK BONDS FOR SUSTAINABLE DEVELOPMENT | INVESTOR NEWSLETTERDECEMBER 2022

PROMOTING SUSTAINABLE CAPITAL MARKETS

Frameworks for Issuing Sustainable Development Bonds
IBRD’s Sustainable Development Bond Framework provides investors with information on how
World Bank bonds support sustainable development, including examples of the types of projects
and programs that bond proceeds support through the financing of loans to member countries.

Finding IBRD Bonds on Market Platforms
IBRD Sustainable Development Bonds & Green 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 ExchangeAwards

Podcasts & Publications
The Development Podcast, Gen Connors
discusses World Bank Group’s newagenda on addressing climate adaptationand mitigation over the next decade
ICMA Podcast, Colleen Keenan
moderates a discussion about social andsustainability bonds
Man Group Podcast, A SustainableFuture, Heike Reichelt speaks on thePower of Capital Markets and MultilateralImpactSovereign Green, Social andSustainability Bonds: Unlocking thePotential for Emerging Markets

Global Capital• Most Impressive SSA Issuer across Multiple
Markets

Environmental Finance• Green Bond of the Year - Supranational• Sustainability Bond of the Year - Supranational

Trading Risk

• Closing the Protection Gap Initiative of the Year:
IBRD CAR 130

IFLR Europe• Deal of the Year - Debt & Equity-linked:
World Bank UNICEF Sustainable Bond

CMD Portal• Best SSA Issuer 2022
• Best ESG Issuer 2022

2023 Summer Internship Global Recruitment Program
The World Bank Treasury is recruiting globally for its Summer Internship applications. College students
interested in working at the nexus of finance, development, and impact can apply until January 9, 2023.
Learn more at www.treasury.worldbank.org/unit/treasury/about/student-and-graduate-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 sharedprosperity. It provides its members with financing, expertise and coordination services so they canachieve 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 orcompleteness of any of the information contained herein. This newsletter may include information relatingto certain IBRD securities. Any such information is provided only for general informational purposes anddoes 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.

INVESTOR RELATIONS & SUSTAINABLE FINANCE, Capital Markets Department, 1818 H Street, NW Washington,
DC 20433, USA E debtsecurities@worldbank.org T +1 (202) 477-2880 W treasury.worldbank.org