A variety of banks, asset managers, insurance companies and pension funds have shown their support, especially in Japan where investors accounted for almost 80% of the transaction volume thus far.
The bonds support the financing of sustainable development projects and programs in member countries.
Since March 2019 and through 25 Sustainable Development Bonds in ten currencies, the World Bank has issued the equivalent of USD 2 billion in support for SDG target 12.3, which calls for halving food waste and reducing food loss by 2030.
The first sustainable development bond designed to raise awareness of food loss and waste was issued with the Folksam Group. Since then, the Bank has engaged with other investors. A variety of banks, asset managers, insurance companies and pension funds have shown their support, especially in Japan where investors accounted for almost 80% of the transaction volume thus far, including Norinchukin Bank, which invested a total of approximately USD 1.2 billion.
Yoshiyuki Arima, Japan Representative of the World Bank Treasury, explained that the “swift and steady” demand from investors to raise awareness of food loss and waste demonstrates the role that the capital markets and private sector partners can play in supporting solutions through their own assets and operations.
The bonds support the financing of sustainable development projects and programs in member countries, including USD 4.6 billion in lending that the International Bank for Reconstruction and Development (IBRD) provides to middle income countries to address food loss and waste, with investments in infrastructure, access to markets and logistics, and waste management.
The World Bank sustainable development bonds, with annual issuances between USD 50-60 billion, support the SDGs through financing of programs that contribute to the achievement of the Goals. The bonds are aligned with the Sustainability Bond Guidelines published by the International Capital Markets Association. [World Bank Press Release]