Citi has revealed it acted as sole structurer and arranger on the World Banks $100m 5-year bond, which will support the International Bank for Reconstruction and Development’s (IBRD) ongoing sustainable development.
The bond will also support similar efforts from the United Nations Children’s Fund (UNICEF), as children worldwide have been severely impacted by the effects of the pandemic. The issuance will channel $50m to UNICEF to support its Covid-19 response programmes for children across a 5-year period.
Investors included a combination of institutional and ultra-high net worth (UHNW) clients of Citi Private Bank.
Praising the support of the Citi investors and clients, Jim O’Donnell, head of Citi Global Wealth, commented: “Making real headway in alleviating social challenges requires new ways of doing things. We’re excited to innovate in the financial space and our institutional and private clients have shown overwhelming support for investments that can further their social missions.”
The Covid-19 pandemic has presented an opportunity to start over for governments, organisations, and society; to forge a path towards a more sustainable, equitable future.
In the financial sector, the importance of a just recovery has manifested in the explosion of ESG integration. The World Bank bond reinforces the important role of the private sector in sharing financial risks to achieve positive development impact.
David Malpass, World Bank Group president, added: “We are grateful to our investors for joining this effort and demonstrating how investors can participate in the global response to COVID-19, through this unique opportunity to scale up resources available to UNICEF to expand its programs.
“The bond also spotlights impact investor support for World Bank Sustainable Development Bonds and the potential for finding new ways to collaborate for impact.”
Henrietta Fore, UNICEF executive director, concluded: “The COVID-19 pandemic has exacerbated deep inequalities within and across countries worldwide. Keeping children at the heart of recovery efforts and focusing on innovative partnerships will enable us to reimagine children’s futures and secure more equitable societies.”