News

World Bank Creates Green Bond to Finance Mitigation and Adaptation

6 November 2008: The World Bank, in partnership with SEB and

Scandinavian institutional investors, will raise funds for projects seeking to

mitigate climate change or promote adaptation to its effects, through the issue

of a “World Bank green bond.”

A result of its “Strategic Framework for

Development and Climate Change,” the green bond is an example of innovative

approaches to financing. The bonds will be issued for a total amount of 2.325

billion Swedish kronor (SEK), with an annual interest rate of 0.25% above

Swedish government bond rates, and will have a maturity of six years. SEB will

be the lead manager and offer the bonds to investors through its distribution

network. [World

Bank Press Release]