Friday, 5 August 2016

World Bank issues Rupee denominated sustainable bond

World Bank has issued two new sustainable bonds in INR and Chinese Renminbi. World Bank, which is also known as International Bank for Reconstruction and Development is AAA (Moodys/S&P) rated. INR denominated bond was issued for retail investors in Italy.  Sustainable bonds are designed to achieve financial objectives with social and environmental goals. It is the first time that World Bank is issuing INR and CNY denominated bonds for investors in Italy. These sustainable bonds will be listed on EuroMOT of Borsa Italiana for Italian Stock Exchange.  Both sustainable bonds have been listed on 22nd July.

French banking giant BNP Paribas acted as a liquidity provider for World Bank issued CNY and INR denominated sustainable bonds. Liquidity Providers are trading members that act as a market maker by providing liquidity. A liquidity provider connects many brokers and trader for increasing the investment in the market. Liquidity providers enhance stock exchanges by providing security against volatility.

World Bank sustainable bonds will adhere to Post 2015 Sustainable Development Goals. The goals will lead to betterment of mankind and provide holistic environment for growth.


The CNY-denominated sustainable development bond pays a yearly coupon of 2.50% in EUR every year. At maturity investors are entitled to the repayment of 100% of their original capital investment in CNY 2 by the World Bank. The payment at maturity will be made in EUR.

The INR-denominated bond pays a yearly coupon of 5.80% distributed in EUR every year and at maturity investors are entitled to the repayment in INR of 100% of their original capital investment2 by the World Bank. The payment at maturity will be made in EUR.

INR denominated sustainable bond was priced at Rs 1,50,000 per bond. The maturity period is of 5 years.

Source - World Bank Press Release, Euronext.

- Chaitanya Kulkarni ( twitter.com/chai2kul ) 

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