UBS today announced an offering for innovative notes issued by
the World Bank's International Bank for Reconstruction and
Development (IBRD) that will support IBRD's sustainable development
activities. The note will, for the first time, link to The Global
Sustainability Signatories Index 7.5% VC ER (the "Index"), which provides exposure to up to
100 UN Global Compact Signatories selected according to their
environmental, social and governance ("ESG") ratings from
Sustainalytics, a leading global provider of ESG research and
ratings. The launch extends UBS's partnership with the World Bank
and other development banks to support fundraising for the
Sustainable Development Goals.
UBS is the exclusive underwriter of the note and exclusive
provider of financial products referencing the Index, which was
created by Sustainalytics and is administered by index provider
Solactive. The notes will be available for UBS's investment banking
clients globally and to its wealth management clients in the US and
other select jurisdictions.
Upon maturity in seven years' time, IBRD will pay investors
their principal plus any positive return of the Index. The notes
have been rated AAA/Aaa by Moody's and S&P.1
In 2016, Axel Weber, Chairman of UBS Group's Board of Directors,
first announced UBS's index initiative relating to the Global
Compact at the UN General Assembly. This year, Mr. Weber unveiled
UBS measures to broaden investors' access to World Bank and other
development bank bonds as compelling, sustainable alternatives to
traditional high-grade fixed income products, including new
development bank bond indices and allocations in UBS's sustainable
wealth management portfolios. These notes represent extensions of
those initiatives.
Michael Nelskyla, Head of Investor Solutions at UBS
Investment Bank, said: "We are privileged to work with
the World Bank and the UN systems to offer new innovations to
support the Sustainable Development Goals. This effort reflects our
commitment to be the leading provider of products that help align
our client's financial objectives with their priorities to support
sustainability. We thank the clients committing capital to this
initiative and hope it will encourage others to embrace innovative
sustainable instruments in the future."
Arunma Oteh, World Bank Vice President and Treasurer,
said: "We are delighted to broaden our partnership with UBS and
bring to market another innovation that offers investors
sustainable investment opportunities. Together, we will continue to
focus on new ways to put capital to work to address the immense
development challenges we must tackle to achieve the Sustainable
Development Goals.”
Mark Haefele, Chief Investment Officer at UBS Global Wealth
Management, said: "We are delighted to expand our investing
partnership with the World Bank. 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."
UBS will donate a percentage of its revenues from the notes to
the UBS Optimus Foundation for projects linked to the UN
Sustainable Development Goals. The UBS Optimus Foundation will
select investments that are aligned with the Global Financing
Facility's focus on women, children, and adolescents. GFF is a
multi-sectoral innovative financing platform for human capital
development.
The initiative follows similar donations of UBS product revenues
to the UBS Optimus Foundation over the past two years. For example,
the Foundation and the American Association of Cancer Researchers
receive a percentage of the performance fees on UBS's Oncology
Impact Fund, plus 1% of revenues on any treatments in which the
fund invests.
Phyllis Costanza, CEO of the UBS Optimus Foundation,
said: "We're delighted that UBS and the World Bank are offering
investors innovative exposure to companies with high sustainability
ratings, and that UBS will be deploying a portion of earned revenue
as philanthropic capital to address the UN Sustainable Development
Goals. This offering serves a dual purpose in providing our clients
with groundbreaking investment products while activating
philanthropic efforts towards the SDGs."
The offering is due to conclude on October 22, 2018.
For more information on UBS's sustainability activities, please
visit the UBS and Society home page here.
1A credit rating is not a recommendation to buy, sell, or hold
securities and may be revised or withdrawn by the rating agency at
any time.
Summary of terms Issuer: World Bank (International
Bank for Reconstruction and Development, IBRD) Issuer rating:
Aaa/AAA1 Maturity: 7 years Initial Observation Date: October 22,
2018 Final Observation Date: October 22, 2025 Index: The Global
Sustainability Signatories Index 7.5% VC ER (the “Index”) Final
Redemption Amount:
USD 1,000 plus the Premium Paid at
Maturity. The "Premium Paid at Maturity" is the product of USD
1,000 multiplied by the Participation Rate multiplied by the
greater of (i) the Index Return and (ii) zero (0).
Participation Rate: [105-115%]
Maturity date: October 29, 2025 Offer price: 100% of the specified
denomination, i.e. USD 1,000 Clearing systems: DTC, Euroclear and
Clearstream, Luxembourg ISIN: US45905UW348 Dealer: UBS
Securities LLC
1 IBRD has a AAA long-term issuer credit rating from S&P
(last affirmed April 2018) and a Aaa long-term issuer credit from
Moody’s (last affirmed in July 2018). These credit ratings are an
assessment of IBRD’s ability to pay its obligations. A credit
rating is not a recommendation to buy, sell or hold securities and
may be revised or withdrawn by the rating agency at any time.
Credit ratings are indicative of the issuer’s creditworthiness and
not the probability of a return of principal at maturity.
About UBS
UBS provides financial advice and solutions to wealthy,
institutional and corporate clients worldwide, as well as private
clients in Switzerland. UBS's strategy is centered on our leading
global wealth management business and our premier universal bank in
Switzerland, enhanced by Asset Management and the Investment Bank.
The bank focuses on businesses that have a strong competitive
position in their targeted markets, are capital efficient, and have
an attractive long-term structural growth or profitability
outlook.
UBS is present in all major financial centers worldwide. It has
offices in 52 countries, with about 34% of its employees working in
the Americas, 34% in Switzerland, 18% in the rest of Europe, the
Middle East and Africa and 14% in Asia Pacific. UBS Group AG
employs approximately 61,000 people around the world. Its shares
are listed on the SIX Swiss Exchange and the New York Stock
Exchange (NYSE).
About the World Bank
The World Bank (International Bank for Reconstruction and
Development, IBRD), rated Aaa/AAA (Moody’s/S&P), is an
international organization. Created in 1944, it is the original
member of the World Bank Group and operates as a global development
cooperative owned by 189 nations.
The World Bank provides loans, guarantees, risk management
products, and advisory services to middle-income and other
creditworthy countries to support the Sustainable Development Goals
and to end extreme poverty and promote shared prosperity. It also
provides leadership to coordinate regional and global responses to
development challenges.
The World Bank has been issuing sustainable development bonds in
the international capital markets for over 70 years to fund
programs and activities that achieve a positive impact. More
information on World Bank bonds is available
at www.worldbank.org/debtsecurities.
Disclaimers
This press release does not constitute an offer to sell or a
solicitation of an offer to buy these notes (the "Notes), nor shall
there be any sale of these notes, in any state or jurisdiction in
which such an offer, solicitation or sale would be unlawful. Any
offering of the Notes will take place solely on the basis of the
relevant offering documentation including, but not limited to, the
prospectus, term sheet and/or final terms, as applicable, prepared
by the World Bank or on behalf of the World Bank. The World Bank's
prospectus is available at
http://pubdocs.worldbank.org/en/791621507649519475/prospectus-ibrd-gdif-200805.pdf.
Any decision to invest in the Notes should be taken on the basis of
the relevant offering documentation in which the risks, expenses
and conditions regarding the Notes are described. The Notes may not
be offered or sold except in compliance with all applicable laws
and may not be eligible for sale in certain jurisdictions or to
certain persons.
Nothing herein constitutes an offer to sell, or the solicitation
of an offer to buy, any security.
Investing in structured investments involves significant risks.
For a detailed discussion of the risks involved in investing in any
particular structured investment, you must read the relevant
offering materials for that investment.
Structured investments are unsecured obligations of a particular
issuer with returns linked to the performance of an underlying
asset. Depending on the terms of the investment, investors could
lose all or a substantial portion of their investment based on the
performance of the underlying asset. Any payment on a structured
investment, including any repayment of principal, is subject to the
creditworthiness of the issuer. Investors could lose their entire
investment if the issuer becomes insolvent. UBSFS does not
guarantee in any way the obligations or the financial condition of
any issuer or the accuracy of any financial information provided by
any issuer. Structured investments are not traditional investments
and investing in a structured investment is not equivalent to
investing directly in the underlying asset. Structured investments
may have limited or no liquidity, and investors should be prepared
to hold their investment to maturity. The return of structured
investments may be limited by a maximum gain, participation rate or
other feature. Structured investments may include call features
and, if a structured investment is called early, investors would
not earn any further return and may not be able to reinvest in
similar investments with similar terms. Structured investment costs
and fees, which may include distribution fees, are generally
embedded in the price of the investment. Any distribution fee
payable to UBS for selling a structured investment would create an
incentive for UBS to sell that investment and may create a conflict
of interest with investors. The tax treatment of a structured
investment may be complex and may differ from a direct investment
in the underlying asset. UBSFS and its employees do not provide tax
advice. Investors should consult their own tax advisor about their
own tax situation before investing in any securities. In addition,
investors should familiarize themselves with the particular market
risks and the other risks associated with the specific underlying
asset. Investing in structured investments is not suitable for all
clients given their complexity and significant risks.
In providing wealth management services to clients, we offer
both investment advisory and brokerage services which are separate
and distinct and differ in material ways. For information,
including the different laws and contracts that govern, visit
ubs.com/workingwithus.
©UBS 2018. All rights reserved. UBS Financial Services Inc. is a
subsidiary of UBS AG. Member FINRA/SIPC
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version on businesswire.com: https://www.businesswire.com/news/home/20180910005111/en/
Media:UBS Investment BankErica Chase,
+1-212-713-1302erica.chase@ubs.comorUBS Global Wealth
ManagementNick Rice, +1-917-748-0391nicholas.rice@ubs.com
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