The World Bank (International Bank for Reconstruction and Development, IBRD) launched the first impact report covering sustainable development bonds globally. The report shares a detailed overview of how the Multilateral Development Bank (MDB) engages clients to structure these bonds using the Sustainable Development Goals (SGDs) framework. The publication serves as forwarding guidance, measuring the impact of 71 IBRD projects completed in the previous year. IBRD provides a 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., boosting income among the bottom 40 percent of the population among every developing country. Globally, development banks are playing an increased role in fostering public-private partnership through innovative products, including developments bonds, blended finance, etc., to drive 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 a 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 $160 billion 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 classification of Sustainable Bonds is broad by The middle Road.
Check out a note on Humanitarian Impact Bonds. The middle Road will come out with a detailed Online Course on these bonds under Impact Bonds.
# What are Impact Bonds A Brief Overview
Introduction Impact Bonds | The middle Road
The advent of the pandemic has already disrupted social and economic wellbeing making the achievement of 2030 United Nation SGDs milestone even more unlikely.