Last checked at 20 Dec 2021 13:00
20 December 2021
RECORD PLC
Sole investor in issuance of latest World Bank sustainable bond
Record plc ("Record" or "the Company"), the specialist currency and derivatives manager, is pleased to announce that the Record Emerging Market Sustainable Finance Fund, launched this year in collaboration with UBS Wealth Management, was the sole investor in the latest transaction of the Sustainable Development Bonds issued by the World Bank (International Bank for Reconstruction and Development, IBRD) in local currency.
On December 20th, the World Bank has issued a Georgian lari 31 million 2-year Sustainable Development Bond, equivalent of circa USD 10 million, whilst advocating the importance of road safety with its "Safe System" which contributes to the Sustainable Development Goals (SDGs). Record was the sole investor in this issuance. The note was arranged by Bank of America-Merrill Lynch and the Georgian Lari currency exposure was sourced ultimately from TCX-the currency exchange fund, a development driven fund that enables currency impact investments in developing countries.
The World Bank raises funds by issuing Sustainable Development Bonds in the international capital markets to support the financing of sustainable development projects in developing countries across a range of sectors, including among others: agriculture and food security; education; energy; finance; healthcare and social services; environment and gender equality. To diversify its funding program, the World Bank raises funds in a variety of currencies, including local currencies that also support the development of local markets.
With this investment, the World Bank is raising awareness for the importance of road safety and how it is working with member countries to introduce transportation policies and systems that increase safety and reduce road fatalities. Improving the safety of transportation systems directly contributes to several SDGs including Good Health and Well-Being and Sustainable Cities and Communities.
Leslie Hill, CEO, Record plc, said: "We are delighted to be part of this innovative and promising project, which will see the World Bank committing to the advancement of developing countries across a number of important themes, such as road safety and the improvement of local currency markets. This transaction forms part of Record's strategy to grow and diversify our expanding skillset, technical expertise and network in the area of derivatives and sustainable development."
Ruurd Brouwer, CEO, TCX Fund, quoted: "We are thrilled to see Record EM Sustainable Finance Fund investing sustainably in frontier currencies and funding capital projects in developing countries. Sustainable development globally can be advanced greatly by private investors taking the market risk and return that borrowers in emerging markets cannot and should not take. TCX will continue to play the leading role in derisking investments in developing countries and create markets by mobilizing private investors that seek the risk, return and diversification effect. We also thank the World Bank for issuing the local currency note and Bank of America-Merrill Lynch for their structuring role"
For further information, please contact:
Record plc Tel: +44 (0) 1753 852 222
Leslie Hill, Chief Executive Officer
Steve Cullen, Chief Finance Officer
Buchanan Tel: +44 (0) 20 7466 5163
Giles Stewart record@buchanan.uk.com
Victoria Hayns
Henry Wilson
George Beale
Notes to Editors
Record plc
Founded in 1983, Record is an independent, market-leading specialist currency and derivatives manager with over 38 years of experience which has allowed us to develop a deep and fundamental understanding of the risk and reward opportunities within those markets.
Our range of products typically assist our clients in achieving either their risk-reduction (via Currency Hedging) or return-seeking (via Currency for Return) objectives.
Our clients are largely institutions, including pension funds, charities, foundations, endowments, and family offices, as well as other asset managers and corporates.
Record (LSE: REC) was admitted to trading on the London Stock Exchange on 3 December 2007.