The World Bank (International Bank for Reconstruction and Development, IBRD) launched the first impact report covering sustainable development bonds in the world. The report shares a detailed overview on how the Multilateral Development Bank (MDB)engages with clients for structuring these bonds using the Sustainable Development Goals (SGDs) framework, measures the impact of 71 IBRD projects completed last years and serves as a forward guidance on selected approved projects. IBRD provides basket of financial products and advisory services to middle and credit worthy low-income countries to fight twin objectives of alleviating extreme poverty and enhancing inclusive growth i.e boost income among the bottom 40% of the population among every developing country. Globally development banks are playing an increased role in fostering public private partnership through innovation products including developments bonds, blended finance etc. to drive in private investment to bridge the gap in achieving the SDGs.
IRDB which operates in 59 countries enables social impact in low and vulnerable countries through development work through public private partnership model. The report highlights World Bank’s effort in fighting the pandemic.
According to Anshula Kant, Managing Director and Chief Financial Officer, World Bank Group, the group is expected to provide about $160B over 15 months to fight COVID-19 with a third of the capital from IBRD.
It’s been more than a decade since the launch of Green Bonds and over the years the sustainable bonds have proved to be one of the critical ways in boosting public private partnerships for raising capital from investors. Sustainable bonds enable investors to earn a financial return along with delivering a sustainable impact in the development sector. The report is a collaborative effort taking views of multiple actors within the developments sector including investors. As the sustainable bonds become more matured, both Green and Social Bond principles paly a key role in driving accountability and transparency within the development sector. These bond work as an enabler in driving public private partnerships through sovereigns, financial institutions, supranational and impact investors among others. The advent of the pandemic has already disrupted social and economic wellbeing making the achievement of 2030 United Nation SGDs milestone even more unlikely.