12 February 2018: The International Bank for Reconstruction and Development (IBRD), an institution of the World Bank Group, issued a US$350 million bond that raises funds for all of the Bank’s development activities, while focusing on four of the 17 SDGs. The sole investor in the bond is the Folksam Group, one of Sweden’s major insurance and investment management companies.
Arunma Oteh, World Bank, said the bond will support both development priorities for Swedish investors as well as the Bank’s operations “that are aligned with all SDGs.” She added that this kind of investor engagement is essential for: linking investment to impact; defining effective reporting mechanisms; and supporting the development of sustainable investment products and capital markets.
Jens Henriksson, Folksam Group CEO, noted that Folksam supports all 17 SDGs, but, through engagement with its clients, it has chosen to focus on four specific Goals in its sustainability strategy: SDG 3 (good health and well-being); SDG 5 (gender equality); SDG 12 (responsible consumption and production); and SDG 13 (climate action).
The World Bank issues between US$50-US$60 billion in the global capital markets every year, and proceeds of all its bonds support development programs that are aligned with the SDGs. Such programs include: Healthcare for Women and Children in Argentina (SDGs 3 and 5); Healthcare and Safety Nets in Swaziland (SDG 3); Waste Management and Recycling in China (SDGs 3, 12 and 13); Water and Sanitation in Rural India (SDGs 3 and 12); and Coral Reef Rehabilitation and Management in Indonesia (SDG 13).
In March 2017, the World Bank launched the first-ever bonds directly linked to the SDGs, arranged by BNP Paribas. In January 2018, the Bank issued a Sustainable Development Bond to raise awareness for empowering women and girls, and to accelerate economic development, reduce poverty and build sustainable societies around the world. BMO Capital Markets and Bank of America Merrill Lynch serve as joint lead managers for the bond. [World Bank Press Release] [SDG Knowledge Hub story on first SDGs bond] [SDG Knowledge Hub story on sustainable development bond]