“In 2008, the World Bank Treasury pioneered green bonds to support the financing of projects addressing climate change. Today, the World Bank issues sustainable development bonds. To learn about them, we sat down with Heike Reichelt, head of investor relations and sustainable finance for the World Bank Treasury of the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).
What are sustainable development bonds and how are they different from our green bonds?
They are similar: all World Bank bonds raise funds from investors in the bond markets to support the financing of projects in developing countries. With green bonds, we communicate to investors the positive impact that our loans make in climate mitigation and adaption projects. With sustainable development bonds, we are able to communicate the positive impact of the World Bank’s full range of sector and project lending—all of which, by the way, also incorporate climate considerations. IBRD, referred to as “World Bank” in the capital markets, began issuing green bonds almost 15 years ago. IDA began issuing bonds in 2018 – more information is available on the IDA website, but my answers will be focused on IBRD due to its longer track record.”
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The World bank 28 September 2021.