Overview

Multilateral Development Bank Bonds – A Rewarding Investment for a Better Society

With the objective of helping rebuild countries devastated during World War II, the World Bank was created at the Bretton Woods Monetary Conference in 1944. It is the first founded and largest Multilateral Development Bank (MDB), touching all sectors relevant to ending extreme poverty and supporting economic growth in developing countries.

Essentially, MDBs are supranational institutions created by multiple sovereign governments, whose purpose is to fund infrastructure and provide technical assistance in developing countries. They issue bonds in the international capital markets and use the proceeds to finance projects with positive social and economic impact in emerging nations. As shareholders of the MDB, sovereign governments support the MDB by using the subscribed capital to meet any obligations related to the loans of the MDB.

To provide insights into the world of Multilateral Development Bank Bonds, Solactive demonstrates this concept in its latest White Paper called: Multilateral Development Bank Bonds: A Rewarding Investment for a Better Society. Given Solactive’s sharp focus on Environmental, Social, and Governance (ESG) strategies, the publication aims to expose a field of impact investment that has not been widely explored before by the public and gives answers to questions such as “What is a Multilateral Development Bank?”, “What do Multilateral Development Bank Bonds look like?”, and “Are MDB bonds appealing?”. Within the White Paper, Solactive presents the Solactive
UBS Global Multilateral Development Bank Index Family
, a family of benchmarks targeting the bonds issued by Multilateral Development Banks.

 

To read the full white paper, please click on the link below.