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The World Bank is hoping to draw attention to the United Nations’ sustainable development goals with a sale of unusual bonds.
Payouts on the securities, which are relatively small, will be linked to the stock market performance of 50 companies considered to be making a significant contribution to the goals, including Nestle and Danone.
The World Bank has been making concerted efforts to promote global sustainability within financial markets and has previously sold green bonds and a sustainable development bond denominated in Chinese renminbi.
BNP Paribas arranged issuance of the €107m 15-year bond and €57m 20-year bond which were sold to a small group of European investors, including the bank’s French and Italian subsidiaries. World Bank Vice Treasurer Arunma Oteh said the bank planned to come to market with similar bonds available to a wider pool of investors in future.
Sustainable development goals were created in the mould of the UN’s earlier Millennium Development Goal and encompass economic, social and environmental objectives such as gender equality and combating climate change.