Banque Syz’s advisory unit has launched a new equity-linked bond in partnership with the World Bank and BNP Paribas, Citywire Switzerland can reveal.
The new product is issued by the World Bank and linked to a basket of developed market stocks that meet sustainable development goals (SDGs) criteria, which are sanctioned by the United Nations.
Banque Syz is the sole distributor of the note, which, according to the group, is the first bond in Switzerland that directly links private investors to the SDGs.
The project is led by Carole Millet and Manuel Terreault from the Geneva group’s advisory team.
Commenting on the issuance, World Bank vice president and treasurer, Arunma Oteh added: ‘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 in line with the goals of eliminating extreme poverty and boosting shared prosperity, aligned with the SDGs.
The return on investment in the bond is linked to the stock performance of companies in the Solactive Sustainable Development Goals World MV Index.
Overall, the index has 30 companies that dedicate at least one fifth of their activity to sustainable products, or are recognised leaders in their industry on socially and environmentally sustainable issues.
The new project is being developed as the group is seeing growing appetite from clients to invest in a sustainable manner, Millet and Terreault said in a statement.
'As investment professionals, it is our responsibility to care about future generations. This means protecting their future assets and growing their capital, and also doing our best to leave them in a better place and in a safer world,' they said.