Western Asset Management Company Invests in World Bank Sustainable Development Bond to Support Holistic Approach to Climate Action

WASHINGTON, December 8, 2022 – The World Bank (International Bank for Reconstruction and Development, IBRD, AAA/Aaa) today issued an IDR 400 billion (USDeq. 25 million) 5-year Sustainable Development Bond due December 2027. This transaction is part of the World Bank’s effort to issue Sustainable Development Bonds while engaging with investors to highlight the urgency of mainstreaming climate action. Western Asset Management Company was the sole investor in the transaction on behalf of client assets. Bank of America Securities was the underwriter of the transaction.

Heike Reichelt, Head of Investor Relations and Sustainable Finance, World Bank Treasury, said “We are pleased to see continued investor interest in climate action. The World Bank’s holistic approach to integrating climate change across operations is central to sustainable development and an example of how climate action can be mainstreamed as a consideration for investment and decision-making.”

Kevin Ritter, Portfolio Manager, Western Asset Management Company, said “We are excited to collaborate with the World Bank on this opportunity. We find the income profile and potential total return of the Indonesian rupiah-denominated issuance attractive. Additionally, supporting the World Bank’s Sustainable Development Bond Program-which adheres to the highest industry standard with respect to transparency and the use of proceeds-provides a unique and credible opportunity to support the financing of sustainability-enhancing development programs, including its program of climate-related investments, while at the same time enabling specific clients to meet their investment objectives.”

As the largest multilateral financier of climate action in developing countries, the World Bank works to incorporate climate activities into all its operations, including investments in social sectors such as education and health. In the last fiscal year all IBRD projects were screened for climate risk and over 90 percent incorporated dedicated climate components. This includes projects across sectors and regions, not only sectors typically associated with climate investments.

The World Bank issues Sustainable Development Bonds in the international capital markets to support the financing of sustainable development activities designed to achieve positive social and environmental impacts in developing countries, while raising awareness of specific development themes across a range of sectors. This bond was issued under the World Bank’s Sustainable Development Bond Framework.

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