(Finance) – The World Bank has placed today on the Italian Stock Exchange a new investment solution intended for retail investors in Italy. This is a callable fixed rate Sustainable Development Bond with a duration of 5 years, denominated in euro, for the placement of which it collaborated with BNP Paribas.
“This bond, like all the bonds we issue, is a sustainable bond, so it finances sustainable development operations – he said Jorge FamiliarVice President & Treasurer of the World Bank – Proceeds from this bond will support health, education, infrastructure, energy projects in emerging and developing countries around the world.”
The start of negotiations saw the participation of important managers of the group Euronext, which represents an attractive platform for global bond issuers. “Today we have the World Bank here, returning after 5 years with a retail issue – he said Fabrizio TestaCEO of Borsa Italiana – Italy is recognized worldwide, as Jorge Familiar reminded us, with the World Bank having only drawn from retail twice and it was in Japan and Italy, therefore Italy is recognized as a source in the retail world for fundraisingand this is certainly recognized at Euronext level as well.”
Testa also spoke about the “recent launch of Next Gen Bonds on our MTS platform, which is going very well, with the primary dealer providing liquidity similar to what sovereign issuers do on the same platform. In the first days of trading we are seeing volumes around 1 billion per dayand this was also made possible by the fact that together with all our European colleagues we passed the message to the European Commission and who should then take a decision in these terms”.
The placement of this Sustainable Development Bond came at a buoyant time for bond fundraising. “It’s definitely a important period for many issuers returning to the debt capital market. Euronext gives very important support in this case in terms of listing, we are the world leader in the listing of bonds on our seven markets – he said Maurizio PastoreHead of Debt and Funds Listing at Euronext – Italy has a crucial role in this profile, in particular because it has the best retail distribution market in the world, the most liquid, as demonstrated by some bonds such as that of Eni or that of CDP recently, which have been oversubscribed to a truly exceptional extent.”
“Today’s bond listed here on our World Bank MOT regulated market fills us with pride – he continued – because obviously it is a retail distribution for such an important institution, where the bond is a sustainable development bond that will help the World Bank projects achieve their objectives, in terms of improving some environmental projects, the reduction of poverty, projects that also help children in areas in difficulty, but we also think of the countries and communities that in a particular historical moment need financing”.
“Certainly this Bond, although not of a huge size, has a distribution that will go to Italian retail customers and they will lend a hand on these projects – he added – recalling that the World Bank is financed extensively on the public capital marketssomething that many may not know, thinking that it is subsidized by taxpayers, or by taxes, in reality it goes on the market and so do many other companies, banks and public entities”.