World Bank echoes EIB with new eco bond

The World Bank has launched its Eco-3 Plus, a structured product for sale to retail investors. The six-year note pays a variable annual coupon of 3% or higher, depending on the performance of the ABN Amro Eco Index. The index comprises companies engaged in alternative energy, clean water, waste processing and carbon reduction. Issuer the World Bank which also guarantees that the principal is returned to investors on maturity.

The World Bank will use the proceeds from this note to fund poverty alleviation and sustainable development projects around the world.

“The resulting product is particularly attractive thanks to our AAA rating, which makes the World Bank one of the most creditworthy institutions in the world,” says Herman Wijffels, executive director at the World Bank. “As an investor you are buying into an almost risk-free return that can rise even further, depending on the performance of the ABN Amro eco index