The World Bank Issues a 10-Year Step-Up Callable Green Bond for Merrill Lynch Wealth Management Clients
August 20 2014 - 6:47PM
Business Wire
Today the World Bank (International Bank for Reconstruction and
Development, rated Aaa/AAA) priced a $12.057 million World Bank
Step-Up Callable Green Bond sold to Merrill Lynch Wealth Management
clients. Bank of America Merrill Lynch offered the step-up fixed
rate bonds, which are callable after one year. The bonds will pay a
2.32 percent coupon per year for the first five years (stepping up
to a maximum final coupon of 8.82 percent per year) and will mature
on August 27, 2024 unless called earlier by the World Bank.
World Bank Green Bonds offer an opportunity for investors to
support environmental solutions through a high grade fixed income
investment. World Bank Green Bonds benefit from the triple-A credit
strength of the World Bank and provide comparable returns to other
World Bank bonds. World Bank Green Bonds support the financing by
the World Bank of projects in its member countries that meet
specific criteria for low carbon development. The types of eligible
projects include alternative energy installations, funding for new
technologies that reduce greenhouse gas emissions, reforestation,
watershed management and flood protection among others.
“We are pleased to work with Bank of America Merrill Lynch to
provide an opportunity for their clients to help finance activities
that promote low carbon and climate resilient development and
growth in emerging economies. We are delighted with the strong
demand for this product, demonstrating that individual investors
also have a keen interest in the issue of climate-smart
development,” said Doris Herrera-Pol, director and global head of
Capital Markets at the World Bank.
“Clients continue to turn to us for opportunities to express
their social, political and environmental values through their
investments,” said Andy Sieg, head of Global Wealth and Retirement
Solutions for Bank of America Merrill Lynch. “This offering
represents another milestone in our efforts to help individuals and
families achieve their goals through investments with social
purpose.”
“We are pleased to work with the World Bank once again to offer
clients the opportunity to invest in securities that can benefit
the environment. As demand for these products continues to grow
across a wide range of investors, we look forward to continuing our
partnership with the World Bank in this area,” said Andrew R. Karp,
co-head of Americas Investment Grade Capital Markets at Bank of
America Merrill Lynch.
This offering of green bonds is consistent with the Sustainable
Energy for All Initiative (www.SE4ALL.org). It demonstrates how
green bonds are attracting new capital, not only from institutional
investors, but also from individual investors. This is the third
time World Bank Green Bonds have been offered to individual
investors through Bank of America Merrill Lynch. The World Bank has
been a leader in developing the Green Bond market from an issuer’s
standpoint, while Bank of America Merrill Lynch continues to be a
leader in the development of this market as an underwriter. Merrill
Lynch Wealth Management, an innovator in the rapidly growing social
impact investing arena, was the first U.S. wealth management firm
to offer such World Bank Green Bonds to U.S. individual
investors.
Transaction Summary:
Issuer:
World Bank (International Bank for
Reconstruction and Development, IBRD)
Issuer rating:
Aaa/AAA
Amount: USD
12.057 million
Settlement date: August
27, 2014
Maturity date: August 27, 2024
Issue price: 100%
Coupon:
Year 1-5: 2.32%
Year 6-8: 2.57%
Next 6 months: 3.32%
Next 6 months: 4.82%
Next 6 months: 7.32%
Next 6 months: 8.82%
Early redemption: The Issuer can call
the Notes early at par, plus accrued interest, semi-annually
beginning on 27 August 2015
Denomination:
USD 1,000
Clearing system: The
Depository Trust Company, also known as DTC
Lead manager:
Bank of America Merrill Lynch
About the World BankThe World Bank (International Bank for
Reconstruction and Development, IBRD), rated Aaa/AAA
(Moody’s/S&P), is an international organization created in
1944. It operates as a global development cooperative owned by 188
nations. It provides its members with financing, expertise and
coordination services so they can achieve equitable and sustainable
economic growth in their national economies and find effective
solutions to pressing regional and global economic and
environmental problems. The World Bank has two main goals: to end
extreme poverty and promote shared prosperity. It seeks to achieve
them primarily by providing loans, risk management products, and
expertise on development-related disciplines and by coordinating
responses to regional and global challenges. It has been issuing
bonds in the international capital markets for over 60 years to
fund its activities.
Information on bonds for investors is available on the World
Bank Treasury website: www.worldbank.org/debtsecurities.For more
information about World Bank green bonds, see
http://treasury.worldbank.org/cmd/htm/WorldBankGreenBonds.html.For
more information about World Bank structured notes, see
http://treasury.worldbank.org/cmd/htm/StructuredNotes.html.
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Reporters May Contact:Zia Ahmed, Bank of America Merrill Lynch,
1.646.855.3299zia.r.ahmed@bankofamerica.comMatthew Card, Merrill
Lynch Wealth Management,
1.617.434.1388matthew.card@bankofamerica.com
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