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World Bank Green Bonds
United States of America
Last updated 12 May 2020, by Impactyield.
Fund geography
***NOTE: World Bank Green Bonds are fixed income products (not a fund) that are distributed through financial institutions operating in the international capital markets in the primary market and traded in the secondary market.***
Since 2008, the World Bank has offered a special type of bonds called World Bank Green Bonds. The proceeds of World Bank Green Bonds support World Bank projects that meet specific criteria for low-carbon development or that help countries adapt to the effects of climate change and address investments in climate-related resilience. These projects include solar and wind installations, waste (methane emission) management, construction of energy-efficient buildings and carbon reduction through reforestation and avoiding deforestation.
The World Bank has been issuing bonds for over 60 years.
Financial description
Green bonds are a ‘plain vanilla’ fixed income product that offers investors the opportunity to participate in the financing of ‘green’ projects that help mitigate climate change and help countries adapt to the effects of climate change. The bonds have similar features to regular bonds by the issuing entity, including credit risk and size. Because of the standard financial features and the dedication to climate change, they are of interest to a broad range of investors – from retail and high-net-worth, to institutional investors with large allocations to fixed income. They are especially attractive to investors who incorporate ESG into their analysis, pursue specific environmental strategies and/or have a separate asset class for climate-focused investments. A key feature of these bonds valued by many investors is the due diligence process that the issuer of green bonds conducts to identify and monitor ‘green’ projects.
The sizes, maturities, and currency for bonds vary depending on investor demand for the particular bond type issued. The size can range from an equivalent of USD 10 million to over USD 6 billion for a single transaction. The minimum denomination is usually USD 1,000, but can also be higher depending on the type of bond and investor for the specific bond issue. The maturity ranges from one to over 20 years. See the attached fact sheet for further information on past issuances.
16 years
of track record
2008
the year funded
n.a.
AUM
Interested in this fund?
Log in or create an account to request more information.
Gain a deeper and comprehensive understanding of how this fund generates positive impact in the themes and SDGs that matter to you, with insights provided by our dedicated team of expert analysts, and receive notifications about new available impact products, exciting investment opportunities, and relevant updates in the world of impact investing.
Asset manager
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SDG goals
SDG targets
Substantially reduce waste generation
Increase financial resources to conserve and sustainably use ecosystem and biodiversity
Universal access to modern energy
Increase global percentage of renewable energy
Double the improvement in energy efficiency
Expand and upgrade energy services for developing countries
Impact Category
Key performance indicators
Fund overview
Asset manager: World Bank (International Bank for Reconstruction and Development – IBRD)
Product track record: Fund has 16 years of track record
Target IRR: n.a.
Committed Capital: n.a.
Target return category: Risk-adjusted market-rate of return
Fund domicile: United States of America
Product status: Open - committed capital
Style/Stage:
Inception year: 2008
Vintage year: n.a.
Target region: Emerging countries
Target close date: n.a.
Product term: World Bank Green Bonds
Assets under management: n.a.
Investment size: Min: 0; Max: 0; Avg: 0
Co-investment policy:
Currency of investments: USD (US Dollar)
Currency for fund / product figures: USD (US Dollar)
Fund investments to date: 110
Fund investments to date exited or repaid: 10
Management fee: n.a.
Carried interest: n.a.
Hurdle rate: n.a.
GIIN Investors' Council Investment: Yes
Limited Partners / Investors: Examples of investors in World Bank Green Bonds: Aberdeen Asset Management • ACTIAM (Formerly SNS AM) • Adlerbert Research Foundation • Aegon Asset Management • AMP Capital • AP2 and AP3 – Swedish National Pension Funds • Australia Local Government Super • Australian Ethical Investment Ltd • Barclays Treasury • BlackRock • Breckinridge Capital Advsiors • Caisse Centrale de Reassurance • California State Treasurer’s Office • CalSTRS • Calvert Investments • Church of Sweden • Colonial First State Global AM • Deutsche Asset & Wealth Management • Everence Financial • FMO (Netherlands Dev. Fin.) • Ikea Group • LF Liv Mirova • MISTRA • Natixis Asset Management • New York Common Retirement Fund • Nikko Asset Management • Pax World Balanced Fund • Pictet • QBE Insurance Group Ltd • Rathbone Greenbank • Sarasin • SEB Ethos rantefund / SEB Fonden / SEB TryggLiv • Skandia Liv • Sonen • Standish Mellon Asset Management • State Street Global Advisors • TIAA-CREF • Trillium Asset Management • UN Joint Staff Pension Fund • UniSuper • WWF-Sweden • ZKB (Zürcher Kantonalbank) • Zurich Insurance • Zwitserleven
Limited Partner / Investor Type: Development Finance Institution (DFI), Endowments/Foundations, Family Office, Pension Funds, Other Institutional Investors, Retail Investors
Contact
E-mail: n.a.
Website: http://treasury.worldbank.org/cmd/htm/WorldBankGreenBonds.html
Phone number: 202 477 2880
If you wish to have your details removed from this database please email gdpr@impactyield.com
Heike Reichelt
Head of Investor Relations and New Products Capital Markets Department
Impact Performance
n.a.
Impact thesis
Proceeds from World Bank green bonds are used to support projects that address the climate challenge as selected by World Bank environment specialists based on a predetermined set of criteria that promote low-carbon development. These bonds allow investors to take advantage of the World Bank’s rigorous process of appraising and implementing suitable projects, as well as monitoring their effectiveness in countries that the investors would not normally be able to invest in without an expensive due diligence process.
Eligible projects are selected by World Bank environment specialists and meet specific criteria for low-carbon development. Examples of eligible mitigation projects are the following:
• Solar and wind installations;
• Funding for new technologies that permit significant reductions in greenhouse gas (GHG) emissions;
• Rehabilitation of power plants and transmission facilities to reduce GHG emissions;
• Greater efficiency in transportation, including fuel switching and mass transport;
• Waste management (methane emissions) and construction of energy-efficient buildings;
• Carbon reduction through reforestation and avoided deforestation.
Examples of eligible adaptation projects are the following:
• Protection against flooding (including reforestation and
watershed management);
• Food security improvement and implementing stress-resilient
agricultural systems (which slow down deforestation);
• Sustainable forest management and avoided deforestation.
Impact Management
n.a.