Slaughter and May advised the United Nations Children's Fund (UNICEF) and the World Bank (International Bank for Reconstruction and Development or IBRD), in relation to the issuance by IBRD of a US$100,000,000 bond due March 2026 (the Bond) and related arrangements between IBRD and UNICEF.
The proceeds of the Bond will be used to support IBRD’s ongoing sustainable development and COVID-19 activities and includes a feature to support similar efforts by UNICEF, allowing private sector investment to assist in these important ESG objectives. An amount equivalent to half of the total proceeds of the Bond will be channelled to UNICEF.
IBRD’s obligation to make payments to holders on the UNICEF portion of the Bond is conditional upon (i) receipt of equivalent amounts from UNICEF and (ii) on UNICEF receiving sufficient pledge donations from private individuals in certain countries. This frontloading of financing to UNICEF will support UNICEF’s pandemic response programs for children around the world over five-year term of the Bond.
Slaughter and May worked closely with internal counsel at UNICEF, led by Peter Mason and Sandra Baffoe-Bonnie, and at IBRD, led by Shirmila Ramasamy, on the issuance of the Bond.