The World Bank has issued its first bond linked to the United Nations’ Sustainable Development Goals.
This is the first time the World Bank has issued bonds that directly link returns to the performance of companies advancing global development targets, set out in the Sustainable Development Goals. These include a roadmap for progress on climate, biodiversity, gender equality, health and sustainable infrastructure.
Returns on the €163m two-tranche issue led by BNP Paribas are linked to the Solactive Sustainable Development Goals World Index, an index of 50 companies identified as making significant contribution to the advancement of the UN’s sustainable development agenda.
According to the World Bank, the bonds are part of the “SDGs Everyone” initiative – and are a new financial model to support the SDGs, as called for by the UN Secretary-General’s Financial Innovation Platform (FIP) launched in October 2016.