The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today, July 14, 2022 issued an AU$50 million Sustainable Development Bond due July 2027 as it engages with investors on the importance of road safety.
This was also the first Sustainable Development Bond sold to a Japanese investor while raising awareness for road safety.
The World Bank supports programs and activities in its member countries designed to achieve a positive social and environmental impact in line with the World Bank’s “twin goals” of eliminating extreme poverty and promoting shared prosperity. These “twin goals” are aligned with the Sustainable Development Goals (SDGs).
Together with member countries, the World Bank noted that it is working to introduce transportation policies and systems that increase safety and reduce road fatalities.
“Improving the safety of transportation systems directly contributes to SDG 3 (Good Health and Well-Being) and SDG 11 (Sustainable Cities and Communities). Investments that incorporate road safety also contribute to many other SDGs by saving lives, preserving human capital, and promoting economic development”.
World Bank
According to the World Bank, road safety is an important development challenge because road crashes rank as the leading cause of death globally for children and youth aged 5-29.
Consequently, the World Bank disclosed that it is implementing a “safe system” approach to support road safety in its member countries. This approach includes strengthening countries’ capacity to design and implement effective road safety interventions and create a holistic, country-level road safety management system.
World Bank bonds
World Bank bonds support the financing of programs that further enhance the attainment of the Sustainable Development Goals (SDGs).
World Bank bonds are aligned with the Sustainability Bond Guidelines published by the International Capital Market Association and as such support the financing of a combination of green and social projects. This includes sustainable development projects, programs and activities in IBRD member countries as described in the World Bank Sustainable Development Bond Framework.
The World Bank is also a member of the Executive Committee of the Green Bond, Social Bond, and Sustainability Bond Principles. A key priority for the World Bank’s capital markets’ engagement is building strategic partnerships with investors to promote the importance of private sector financing in sustainable development.
The World Bank’s Sustainable Development Bond Impact Report described how the World Bank engages with investors on the SDGs and raises awareness for specific development challenges.
The World Bank, an international organization created in 1944, is the original member of the World Bank Group and operates as a global development cooperative owned by 189 nations. The World Bank provides loans, guarantees, risk management products, and advisory services to middle-income and other creditworthy countries to support the Sustainable Development Goals and to end extreme poverty and promote shared prosperity.
It also provides leadership to coordinate regional and global responses to development challenges. The World Bank has been issuing Sustainable Development Bonds in the international capital markets for over 70 years to fund programs and activities that achieve a positive impact.
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