Health Care

First IDA bond raises USD 1.5 bLn from investors worldwide – World Bank

WASHINGTON, The International Development Association (IDA) launched its first bond in its nearly 60-year history, “as investors around the globe seized the opportunity to invest in a triple A-rated asset and support life-changing investments in the world’s poorest countries,” the World Bank said Tuesday.

The World Bank said in a statement that the bond, which marks the launch of IDA’s borrowing program in the global capital markets, “raised USD 1.5 billion to address some of the most pressing development issues.” World Bank Group President Jim Yong Kim said in this regard that “today’s bond issue will allow IDA to tap into the power of capital markets to tackle some of the world’s biggest challenges and help millions lift themselves out of poverty.” He added that “while it is a new bond issuer, IDA is an established institution, with an almost 60-year track record as the leading source of development finance and expertise for some of the fastest growing economies in the world.” According to WB, “until now, IDA has been virtually unleveraged, building up an unparalleled equity base of USD 158 billion.” It noted that in 2016, IDA shareholders agreed “to transform IDA’s financing model, leveraging its strong capital base to pioneer a new model for development finance that combines donor funding with funding raised in the capital markets.” It added that IDA’s borrowing program “will enable IDA to significantly scale up its support toward achieving the Sustainable Development Goals, while offering investors an efficient way to contribute to global development.

Source: Kuwait News Agency