World Bank, Westpac launch first sustainable growth bonds in Australia

21 November 2018

World Bank, Westpac launch first sustainable growth bonds in Australia

The World Bank announced it is partnering with Westpac Banking Corporation and BNP Paribas to launch the first Sustainable Growth Bonds for Australian investors.

The Bonds offer Australian investors a unique opportunity to support the Sustainable Development Goals (SDGs) and will be offered exclusively to clients of the Westpac Group through Westpac Private Bank, St George Private and Bank of Melbourne Private. The partnership underscores Westpac’s support of the United Nations SDGs.

All World Bank bonds support its development lending activities that aim to end poverty and create opportunity, and are aligned with the SDGs. The Bonds provide an opportunity for investors to put their capital towards projects that advance these global development priorities.

In addition, the Bonds’ returns are linked to an index that tracks the stock performance of companies advancing global development priorities set out in the SDGs, including climate, gender equality, health, education and sustainable infrastructure, as measured by the Solactive Sustainable Development Goals World MV Index.

In the initial instance, the Bonds will be issued in Australian dollars with a minimum investment amount of AUD 100,000 and arranged by BNP Paribas as part of the “SDGs Everyone” initiative. Under the initiative, the World Bank issues bonds that raise funding to support the financing of projects that support the SDGs, and investors benefit from the performance of companies included in the equity index. The World Bank has issued in excess of US$ 1.5bn in bonds under the initiative for institutional and retail investors.

Arunma Oteh, World Bank Vice President and Treasurer said: “We need to fundamentally rethink development finance to achieve the Sustainable Development Goals. Thanks to our partnership with Westpac Group and BNP Paribas, we are able to offer Australian private investors an attractive risk-reward opportunity that also demonstrates the powerful role of capital markets in connecting savings with development priorities. We hope to continue expanding these offerings for investors and markets across the globe.”

Original source: World Bank
Published on 20 November 2018