WORLD BANK

Sustainable
Development
Bonds
Investor Newsletter  December 2023

Inside:Responding to Overlapping Crises  2Evolution Roadmap  22023 Funding Highlights  3Special Opportunities for Development Partners | 32023 Impact Report  4
Other News & Awards  4

Investor Relations & Sustainable Finance, The World Bank Treasury 1225 Connecticut Avenue NW, Washington, D.C., 20433, USA
P: +1 (202) 477 2880 E: debtsecurities@worldbank.org W: https://treasury.worldbank.org/en/about/unit/treasury/ibrd

PROMOTING SUSTAINABLE CAPITAL MARKETS

Who We Are: World Bank Treasury
The World Bank Treasury manages the issuance programs for both the International
Bank for Reconstruction and Development (IBRD) and the International Development
Association (IDA)1. This newsletter is focused on IBRD bond issuance. 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
75 years to finance lending that supports our mission of ending extreme poverty andboosting prosperity on a livable planet.

FY23 IBRD Lending
Highlights$38.6 billion
new commitments$25.5 billion
loan disbursements

Responding to Overlapping Crises

136

IBRD’s financing supports sustainable development activities in its member countries,
including efforts to tackle overlapping crises that developing countries are facing.
Recent shocks have had both a deep direct human and economic impact as well as
long-term adverse spillovers that threaten to reverse decades of economic gains.

new projects

100%of IBRD projects
screened for climate risk

41%

of financing directed
to climate action

92%
Impacts of climatechangeInflation

Commodity shocks& food insecurity

Evolution Roadmap
The World Bank as a multilateral development bank is increasingly important inaddressing global challenges such as poverty, inequality, inclusion, resilience,sustainability, and cross-border issues like climate change, pandemics, and conflict andviolence. The World Bank's Evolution Roadmap is a strategic initiative designed to more
effectively grapple with the scale of development challenges, built upon threefundamental building blocks:
Vision and Mission“To create a world free ofpoverty – on a livableplanet.” This vision andmission sets us on ajourney that will require
reimagined partnerships,innovative strategies, andoptimism for what'spossible.

Operating Model
We are enhancing
our country
engagement
model, analytics,
financing
instruments, andincentives, to focus
more on outputs
rather than inputs.

of projects withclimate components

Fragility, conflictand violence

FY23 IBRD Regional
Breakdown
FY23, US$38.6 billion (commitments)

Financial Model
While maintaining a triple-A credit
rating that allows us to efficiently
leverage shareholder equity fordevelopment, we will expand theresources available to our members
to further balance sheet
optimization, including increasingequity through various options (incl.
hybrid capital).

11%

17%

20%
26%
26%

East Asia and Pacific
Europe and Central Asia
Latin America and the Caribbean
Middle East and Africa
South Asia______________

1

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

2WORLD BANK BONDS FOR SUSTAINABLE DEVELOPMENT | INVESTOR NEWSLETTERDECEMBER 2023

PROMOTING SUSTAINABLE CAPITAL MARKETSFY23 Issuance in 20Currencies

2023 Funding Program
In fiscal year 2023 (July 1, 2022 – June 30, 2023), IBRD drew on its triple-A credit
rating and strong standing in the markets to raise US$eq.42 billion in 20 currencies
to support sustainable development activities in member countries. IBRD plans toraise US$eq.45-55 billion for the fiscal year 2024 funding program ending June 30,2024.

Other
14%
AUD
6%
EUR
15%

USD
65%

Highlights
Emission Reduction Linked Bond

FY23 Funding
8060

USD billions

The World Bank issued a five year $50 million, principal protected Emission
Reduction Linked Bond that provides investors a return linked to theissuance and sale of Verified Carbon Units (VCUs) by a project in Vietnam.
In this innovative outcome bond investors forgo regular IBRD coupons which
are instead used to finance a project that aims to manufacture and distribute
300,000 water purifiers to approximately 8,000 schools and institutions,making clean water available to around two million children and reducing
GHG emissions by almost 6 million tCO2 eq.

40200
FY18 FY19 FY20 FY21 FY22 FY23

Catastrophe Bond for Chile Earthquake Risk

Benchmarks

Other/Plain Vanilla

Structured Notes

The World Bank executed a dual catastrophe bond and swap transactionthat provides the Republic of Chile with $630 million of insurance cover forearthquake events - $350 million of catastrophe bonds and $280 million ofcatastrophe swaps. This is World Bank’s largest catastrophe risk transfer
transaction for a single country, its nineteenth catastrophe bond and thesecond for Chile.

First Issuer on Euroclear’s Digital Market
The World Bank issued €100 million in 3-year Digitally Native Notes on
Euroclear's Digital Financial Market Infrastructure (D-FMI). This initiative
aims to improve transparency, boost efficiency, and mitigate operationalrisks and costs in securities processing by leveraging distributed ledger
technology. As a result, investors can seamlessly access Euroclear's
settlement platform, benefiting from a full range of services.

Bonds for Retail Investors
In June 2023, the World Bank (IBRD) achieved a milestone by completing a
retail-focused exchange offer, migrating existing LIBOR-based bonds to new
SOFR-indexed bonds – the first such move for a Sovereign, Supranational,and Agency (SSA) bond issuer. Later in the year, the World Bank returned tothe Italian retail market by issuing a 5-year EUR fixed rate callable
Sustainable Development Bond, with the first retail sustainable bond listed in
Italy (Borsa Italiana) in five years.
Click here for more transactions

3Special Opportunities forDevelopment Partners
The role of partnerships is more important thanever. The World Bank’s new vision and mission
require it to mobilize private capital for clientsand leverage support from development
partners, including philanthropies andfoundations. These partners can participate inincreasing the World Bank’s lending capacity
and impact through investing or providing
financial support in a range of investment
products, including:1)
2)
3)
4)

Triple-A Sustainable Development Bonds;
Outcome bonds that can be structured tosupport specific purposes;
Catastrophe bonds used for disaster riskmanagement;
A new product, hybrid capital – investment
product with equity features.

For more information, please contact
debtsecurities@worldbank.org

WORLD BANK BONDS FOR SUSTAINABLE DEVELOPMENT | INVESTOR NEWSLETTERDECEMBER 2023

PROMOTING SUSTAINABLE CAPITAL MARKETSResources for Investors
Framework 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 Exchange

Publications

2023 Awards

World Bank Impact Report

Celebrating retail bonds forItalian investors at the "Ring theBell” ceremony at Borsa
Italiana: Jorge Familiar, VicePresident and Treasurer;
Andrea Dore, Head of Funding;and Ludovic Lumbroso, Senior
Financial Officer, from right toleft.

The 2023 Impact Report waspublished on June 20, 2023. The
report covers both IBRD Sustainable
Development Bonds and Green
Bonds. For the first time, the WorldBank has included a post-issuanceexternal review in the IBRD impact
report for bond allocation.

Islamic Finance News
“Sukuk are Just Another Capital Market Instrument (Andthat is a Good Thing)”

KangaNews Awards• SSA Kangaroo Bond Deal of the Year
• Kauri Bond Deal of the Year

World Bank Blog
“Why Green Bonds Matter – It May Be More Than YouThink”

Climate Bonds Awards• Largest Sustainability Bond
• Largest Issuer of Sustainability Bonds

The International Debt Capital Markets Handbook“Opportunities for Digitizing Debt Capital Markets andApplications for Developing Countries”

Environmental Finance• Award for Innovation - Bond Structure (Sustainability Bond)• Initiative of the Year - Sustainability Bond
• Sustainability Bond of the Year – Supranational• Impact Project/Investment of the Year – Climate

Capital Finance International“The Digitalization of Capital Markets Can Boost BondMarket Efficiencies”

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’s goal is to end extreme poverty and boost prosperity on a livableplanet. It provides its members with financing, expertise and coordination services so they can achieveequitable and sustainable economic growth in their national economies and find effective solutions topressing regional and global economic and environmental problems.

4CMD Portal• First Rhino Bond: Top Deal Winner

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
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.

WORLD BANK BONDS FOR SUSTAINABLE DEVELOPMENT | INVESTOR NEWSLETTERDECEMBER 2023