World Bank launches sustainable development bonds in Scandinavian currencies
The World Bank has priced Norwegian krone and Swedish krona-denominated Sustainable Development Bonds, raising the USD equivalent of $440 million.
The NOK2 billion five-year fixed rate bond and SEK1.75 billion five-year fixed rate bond both mature on 16 March, 2026. Skandinaviska Enskilda Banken acted as lead manager for the transactions. The NOK carries a coupon of 1.25% per annum, with the SEK 0.25% per annum.
Investors in the bonds included Church of Sweden, Cliens Kapitalförvaltning, the Folksam Group, Handelsbanken Asset Management, Nordea Asset Management, SpareBank 1 SMN, SpareBank 1 SR-Bank, SEB Företagsobligationsfond Hållbar, SPP/Storebrand, Swedbank Robur, and Telia Company.
Norwegian investors accounted for 71% of the NOK bond with the remainder placed in other parts of Europe and Asia. Banks and bank treasuries made up 71% of participation followed by central banks (25%) and asset managers (4%). The SEK bond was placed entirely with Swedish investors with asset managers accounting for 75% of participation and pension funds, insurance funds, and corporates making up the balance.
The World Bank launched the bonds while raising awareness for the World Bank’s strategy, projects and programs that focus on gender equality and health, highlighting how COVID-19 disproportionately impacts women.
