World Bank Issues Sustainable Development Bond

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by KnowESG
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Image of a banner displayed on the World Bank's building that reads 'end poverty'.

The World Bank issued a 3-year Chinese yuan-denominated bond to raise CNH 340 million (approx. US$50 million equivalent) that is due in February 2026. The bond is called a "Sustainable Development Bond" and is aimed at raising awareness among investors about the importance of sustainable cities.

The World Bank's issuance of the Sustainable Development Bond aims to address the challenges facing cities as outlined in sustainable development goals (SDG) 11. The bond was placed with Gavekal Capital Limited and was managed by HSBC Bank plc.

The goal of the bond is to help build inclusive, resilient, competitive, and sustainable cities and communities, which is crucial for achieving the SDGs by 2030 and the World Bank's goals of ending extreme poverty and promoting shared prosperity.

With the rapid urbanisation process and increasing financing gaps, there is a need to scale up investment in cities, especially in light of the impact of climate change and the increased frequency and severity of disasters. The World Bank is providing a combination of financing and policy support to help member governments create livable, inclusive, resilient, climate-smart, and competitive cities.

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Heike Reichelt, Head of Investor Relations and Sustainable Finance, World Bank, said, “Cities are home to so many of the world’s poor and vulnerable, who are increasingly faced with the effects of climate change and other shocks. The World Bank works with its member countries to design cities that are more resilient, equitable, and sustainable. We are pleased to see continued investor interest in SDG 11 and thank Gavekal for supporting the World Bank’s activities through their investment in World Bank Sustainable Development Bonds.”

Christine Cheung, Head of Asian Fixed Income, Gavekal Capital Limited, said, “The World Bank has always been one of the market leaders in the sustainability space. As such, Gavekal Capital is pleased to support the World Bank’s CNH-denominated Sustainable Development Bond highlighting sustainable cities. Since being designated as Article 8 under the EU’s SFDR, Gavekal Capital has increased its efforts to promote the Sustainable Development Goals from the United Nations. We believe causes toward sustainable cities can have a significant impact, considering half of humanity lives in cities. We look forward to working with the World Bank and other high-quality issuers to launch more sustainable bonds in the future.”

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Source: World Bank

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