10 September 2018: The World Bank/International Bank for Reconstruction and Development (IBRD) has announced that it will issue its first US dollar-denominated sustainable development notes, which it says will provide investors return exposure to the environmental, social and governance (ESG) performance of signatories to the UN Global Compact.

The notes are linked to an index created by Sustainalytics, underwritten by UBS and administered by Solactive. The Global Sustainability Signatories Index 7.5% VC ER includes 100 companies that demonstrate strong ESG performance. UBS, which is underwriting and distributing the index to its clients as part of its SDG-aligned investment strategy, will donate a percentage of its revenues from the notes to the UBS Optimus Foundation, to finance projects linked to the SDGs. The Foundation will then select investments that are aligned with the focus of the Global Financing Facility (GFF) on women, children and adolescents.

The World Bank uses proceeds raised through Sustainable Development Bonds to support the financing of projects that advance its goals of eliminating extreme poverty and boosting shared prosperity in alignment with the SDGs. [World Bank press release] [SDG Knowledge Hub story on sustainable development bonds for water, sanitation and marine protection] [SDG Knowledge Hub story on SDG bonds]