UBS has partnered with the World Bank to issue US dollar-denominated notes designed to help support sustainable development projects globally.
The World Bank is issuing the notes through its International Bank for Reconstruction and Development (IBRD) which offers loans to developing countries.
UBS said the notes will link to The Global Sustainability Signatories Index 7.5% VC ER, an index providing exposure to about 100 companies that demonstrate strong environmental, social and governance performance.
Available for its investment banking and wealth management clients, UBS is the exclusive underwriter of the note and exclusive provider of financial products referencing the index.
Upon maturity in seven years' time, IBRD will pay investors their principal plus any positive return of the index, UBS said.
‘Our private clients already enjoy unique exposure to the World Bank and to leading sustainable companies through our new 100% sustainable cross-asset portfolio, and we look forward to developing their engagement with IBRD as one of the few fully sustainable AAA-rated issuers,’ said Mark Haefele, chief investment officer at UBS Global Wealth Management.
UBS’ cross-asset portfolio fully based on sustainable investing principles for clients in Asia was launched in April.
The portfolio - part of UBS’ commitment to direct $5 billion of client assets towards impact investing within the next five years – comprises approximately 12 actively managed funds, and passive investments.