Banque SYZ has launched a new bond product issued by the World Bank (IBRD) and linked to a basket of developed market stocks that meet Sustainable Development Goals (SDG) criteria. In partnership with the World Bank (IBRD), Banque SYZ is the sole distributor of the note, the first bond in Switzerland that directly links private investors to SDG.
Returns are linked to the performance of companies advancing the global development priorities set out in the goals, including addressing climate change, ending poverty, advancing gender equality, improving health and building sustainable infrastructure.
SYZ is the first private bank in Switzerland to offer this type of investment to private clients. The bank writes that while ESG focused solutions are available, the partnership with the World Bank goes beyond these solutions by focusing on the SDGs, which are sanctioned by the United Nations and will govern the UN’s global strategy until 2030. In addition, all investments will be used to finance World Bank development projects.
“We are very proud to partner with the World Bank through their investment solution supporting the Sustainable Development Goals. Innovation is one of our core values and as a responsible investor we are pleased to contribute to new solutions creating performance through investments that incorporate environmental, social and governance considerations”, says Eric Syz (pictured), CEO of SYZ Group.
Arunma Oteh, World Bank Vice President and Treasurer, says: “We need to fundamentally rethink development finance to achieve the Sustainable Development Goals. Thanks to our partnership with Banque SYZ and BNP Paribas who arranged the bond, we are able to offer Swiss private investors an attractive risk-reward opportunity that also demonstrates the powerful role of capital markets in connecting savings with development priorities. We hope to continue expanding these offerings for investors and markets across the globe.”
The World Bank will use the proceeds to support the financing of projects that advance its goals of eliminating extreme poverty and boosting shared prosperity, and that are aligned with the SDGs.
The return on investment in the bonds is directly linked to the stock performance of companies included in the Solactive Sustainable Development Goals World MV Index. The index includes 30 companies that, based on methodology developed by Vigeo Eiris’ Equitics, dedicate at least one fifth of their activities to sustainable products, or are recognised leaders in their industries on socially and environmentally sustainable issues.
Solactive applies volatility and diversification filters to reach the final index composition. Vigeo Eiris is a global provider of environmental, social and governance research to investors and public and private corporates.