Record PLC (LSE:REC) announced that its Emerging Market Sustainable Finance Fund, launched this year in collaboration with UBS, was the sole investor in the latest transaction of the Sustainable Development Bonds issued by the World Bank, in Georgia.
The World Bank has issued a 31mln Georgian lari 2-year Sustainable Development Bond, equivalent of US$10mln, in support of a advocacy programme for road safety and transport in the country.
"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,” said chief executive Leslie Hill.
“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, chief executive of TCX Fund, a currency exchange fund involved in the funding, added: “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.”
The note was arranged by Bank of America (NYSE:BAC)-Merrill Lynch and the Georgian Lari currency exposure was sourced ultimately from TCX-the currency exchange fund, Record noted.