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Mechanism

Green Bonds 08/2026

  • Maturity: 31 August, 2026
  • Investor entitled to the repayment of 100% of the original investment in US$ at maturity1
  • Specified denomination: US$1,000
  • Variable return at maturity linked to the performance of the Solactive SPG US Low Carbon Leaders ex-Fossil Fuel Index Target Vol 5

World Bank Green Bond 08/2026 is a diversified instrument and may not be the sole component of an investment portfolio.

The concept

World Bank Green Bond 08/2026 is a debt instrument, “structured product,” characterized by:

A subscription period

Subscription to World Bank Green Bond 08/2026 is only possible:
from 1 August
to 24 August 2016

(subject to early closing at the discretion of the Issuer).

A predetermined maturity

World Bank Green Growth Bond 08/2026 is designed for an investment horizon of 10 years, until its maturity on August 31, 2026. At maturity the product will be redeemed in accordance with the terms summarized below.

It might be possible to sell the Bonds before the maturity date but liquidity is not guaranteed and whether the investor will realize a gain or loss at such time is not measurable a priori.

A redemption amount based on one single parameter

The redemption premium, if any, depends on the evolution of the Solactive SPG US Low Carbon Leaders ex-Fossil Fuel Index Target Vol 5.

How will the redemption premium be calculated?

  • On the initial observation date, the closing level of the Solactive SPG US Low Carbon Leaders ex-Fossil Fuel Index Target Vol 5.
  • On the final observation date, the closing level of the Index is noted. The Index performance is then calculated by comparing the final level with the initial level.
  • At maturity, you receive:

The capital invested (in US dollars)1

+

A redemption premium (in US dollars) equal to the Index performance1, if the latter is positive.

If the Index performance is negative, no redemption premium is paid but you still receive:

The capital invested (in US dollars)1

Illustrations

The following scenarios have informative value. They are no guide to future results.

Adverse Scenario

  • The Index follows a downward trend. On the final observation date, the Index closes at 62.11% below its initial level. Therefore, the index performance amounts to -62.11%.
  • At maturity, you only receive:

The capital (in US dollars)1

The IRR amounts to 0%2 (superior to the IRR of the index, which is equal to -11.42% due to its final performance of -62.11%; this difference comes from the fact that the capital is 100% protected).

Favorable Scenario

  • The Index follows an upward trend. On the final observation date, the Index closes at 63.56% above its initial level. Therefore, the index performance amounts to 63.56%.
  • At maturity, you benefit from a redemption premium equal to 63.56%
  • Therefore, at maturity, you receive:

The capital + 63.56% = 163.56% of the capital (in US dollars)1

The IRR amounts to 6.34%1 (equal to the IRR of the index, which is equal to 6.34%)

1 Excluding fees and taxes, subject to foreign exchange risk if the investor converts the capital and the potential redemption premium that are paid to them to their own currency, and subject to the absence of default by the World Bank.
2 Past performance of the Index is not a guide to future performance. Positive performance of the Index is not assured.
Source: BNP Paribas Arbitrage S.N.C.