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  • Corporate Bonds

Corporate Bond Prospectus Features

corporate bond prospectus database

What Are the Features of a Corporate Bond Prospectus?

Some of the main features of a corporate bond prospectus are information on interest payments, time to maturity, the credit quality of the issuer, and call provisions . The prospectus is a great place to learn if a corporate bond is worth purchasing. Understanding all the features and risks of a corporate bond is a valuable part of making an informed decision.

KEY TAKEAWAYS

  • Some of the main features of a corporate bond prospectus are information on interest payments, time to maturity, the credit quality of the issuer, and call provisions.
  • The prospectus’s job is to provide all the essential information investors need concerning the issuer and the bond.
  • Other valuable features of a corporate bond prospectus include the general outlook for the firm, plans for earning repayment funds, and price projections.
  • The types of corporate bond prospectuses are the preliminary prospectus and the final prospectus.

How a Corporate Bond Prospectus Works

Even though it can be challenging to understand, investors must study a corporate bond's prospectus as carefully as possible. It is the closest thing to a guide on how the bond in question works. The prospectus’s job is to provide all the essential information investors need about the issuer and the bond . This includes information on what they intend to use the money for.

In the U.S., a prospectus must be filed with the Securities and Exchange Commission (SEC) .

Small investors should usually stick to individual corporate bonds with investment-grade credit ratings to avoid defaults and liquidity problems.

Specific Features of a Corporate Bond Prospectus

Timing and conditions of interest payments.

The prospectus contains information about a corporate bond’s predetermined coupon or interest rate. Because yield is determined by the corporate bond’s face value and its interest rate, this is essential information. There should also be details of payment schedules, a common feature of corporate bonds.

Date of Maturity

The date of maturity determines the corporate bond's life span. This states exactly how long the bond must be held until the principal is repaid. On the date of maturity, the principal and the final payment of interest are due. There are typically three ranges of maturity dates: short term, intermediate term, and long term, with the shortest being around one year in length. This is essential information for investors. For example, a bond with a maturity date four years in the future will pay back the principal in half the time of one that has an eight-year time to maturity.

Additionally, corporate bonds with a shorter time to maturity have less time for business conditions to change and increase risks. A lower time to maturity usually means less price volatility for a corporate bond. This can be explained by the term structure of interest rates.

Credit Rating

A corporate bond’s credit rating influences the interest rate paid and provides an excellent guide to the risk that a bond will default . The credit quality of the issuer is one of the most significant features to look for in the prospectus. A higher credit rating means that a corporate bond is less likely to default, but it also typically pays less interest. Small investors should usually stick to individual corporate bonds with investment-grade credit ratings to avoid defaults and liquidity problems.

Call Provisions and Protections

An issuer may offer a corporate bond with a special provision that allows them to put an early call on it. If a bond is called, the issuer repays the bond principal immediately and stops making interest payments. Such provisions provide issuers with a way to get out of making high interest payments after business or market conditions improve. For example, a firm might issue ten-year bonds with high interest rates to avoid bankruptcy during a recession. When conditions have improved, the firm might call the old bonds and issue new ones so they can refinance at lower rates.

Conversely, there are also early call protections that can be included. Call protections guarantee payments will be made for a certain length of time before calling the corporate bond. A corporate bond prospectus that contains such provisions also usually provides details about the risks of such an early call occurring.

Other Features

Other valuable features of a corporate bond prospectus include the general outlook for the firm, plans for earning repayment funds, and price projections. The issuer’s performance, the liquidity of the issue, and whether or not it is an insured bond can also be important. All of these features and risks help an investor understand how much the bond will be worth in various circumstances.

Types of Prospectuses

When looking at bonds specifically, as with stocks, there are two types of prospectuses. The types of corporate bond prospectuses are the preliminary prospectus and the final prospectus.

Preliminary Prospectus

As the name suggests, this prospectus is the first or initial prospectus used by an issuer. It typically contains most of the details of a bond offering by the corporation.

Final Prospectus

Once a deal on a security offering is finalized, the corporate bonds can be sold on the market. A final prospectus is issued that replaces the preliminary prospectus. The final prospectus is typically the most important one for investors.

The Bottom Line

Although a corporate bond prospectus can be rather dense and difficult to read, most of the features discussed above are usually in the first few pages. Moreover, it is better to pay attention to the relevant sections of a prospectus rather than read the entire document. Remember, your skills will improve with practice.

U.S. Securities And Exchange Commission. " What Are Corporate Bonds? "

corporate bond prospectus database

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Corporate Bonds - Data - USA & International

Corporate bonds - data - china, corporate bonds - guides, corporate bonds - web sites, corporate bonds - notes.

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Fixed Investment Securities Database * * Produced by Mergent, Inc. Provides issue detail on over 140,000 Corporate, Corporate MTN (Medium Term Note), Supranational, U.S. Agency and U.S. Treasury debt securities since 1995. Specific issue information available: Full call, put and sinking fund schedules, plus call frequency codes, Structured security flags and detailed information, Updated Fitch, Moody's and S&P credit ratings, U.S. Treasury auction information, Convertible debt information, Underwriters, trustees and fiscal agents, Unit deals and warrant information. Specific issuer information available: Industry code, S.I.C. code and N.A.I.C.S. code, Stock ticker and exchange listings, Issuer name and parent relationships, bankruptcy detail. Available through WRDS.

Datastream International * contains up to date as well as historical international data on bonds, and interest rates (minimum frequency tends to be daily).  Divides its bonds into 2 sections: bonds coming directly from a country and those covered by other organizations such as JP Morgan, Lehman Brothers, Merrill Lynch, and Societe Generale. Brady bonds and credit default swaps are included. Select corporate as well as governmental bonds (included under interest rates) are included.  Includes Green Bond Indices and their constituents for select nations including Australia, Austria, Belgium, Brazil, Canada, China, Denmark, France, Germany, Hong Kong, Italy, Japan, Malaysia, Mexico, New Zealand, Norway, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, the United States.  Available on the workstations located near Firestone A-13-J  and Stokes Library.  Part of Refinitiv Workspace.  

Global Financial Data includes long-term data on corporate bond indices. Methodology and sources are documented.

WRDS Bond Returns **.  Links variables from various databases to provide bond returns.  Fields include CUSIP, CRSP identifiers, Bloomberg Symbol, ISIN, TRACE ID, and Ticker.  1992+

Capital IQ Credit Ratings** (Standard & Poor’s Ratings Services Credit Ratings on Xpressfeed via Wharton Research Data Services (WRDS)).  9,000 global issuers including corporates, financial institutions and insurance companies; 600 sovereign, international public finance and government entities; 11,000 structured finance transactions including asset-backed, commercial mortgage-backed and residential mortgage-backed securities and collateralized debt obligations.  Historical data for global issuers & structured finance data is available back to 1922; public finance data is available back to 2007.

Standard & Poor's Credit Ratings Express** provided a history of short and long term commercial credit and corporate bond ratings at both the issuer/entity and issue/instrument levels. This set also includes Credit Watch and Credit Outlook information. The issuer ratings data started in 1923 and covered more than 20,000 public and private firms through 2012. In addition, information for more than 200,000 distinct credit instruments started in 1969 and ended in 2012. Available through WRDS.

cbonds.com International bond data (corporate, municipal, sovereign) that is particularly strong on sovereigns.  Includes information on the issuance, ratings, and yields.   Also includes selected warrants. Available on workstation SSRC07 (Firestone A Floor).

eMAXX bond holdings data. North America, Corporate Bond Holdings , 1998Q2-2023Q3

Bloomberg * contains up to date as well as historical (though generally not before 1989) international data on indices and bonds (corporate, governmental, and municipal). Frequency varies but is typically daily for financial information and in some cases intradaily. Intradaily data is typically kept from 30 to 90 days only.  Bloomberg has many individual corporate and governmental bonds and bond indices. Available on the workstations located near Firestone A-13-J, Robertson 046, Andlinger 211A, Master of Finance lounge in JRR, and Sherrerd lower level . 

TRACE ( OTC Corporate Bond and Agency Debt Bond Transaction Data ) ** (Trade Reporting and Compliance Engine) NASD's over-the-counter (OTC) corporate bond market real-time price dissemination service. Introduced in July of 2002, TRACE consolidates transaction data for all eligible corporate bonds - investment grade, high yield and convertible debt. As a result, individual investors and market professionals can access information on 100 percent of OTC activity representing over 99 percent of total U.S. corporate bond market activity in over 30,000 securities. The information collected and disseminated for all publicly traded corporate bonds by TRACE includes the time of execution, price, yield, and volume. Available through WRDS. Use the Bond CRSP Link to link corporate bonds to stocks. 

  • Princeton has purchased Academic Trace from FINRA for 2002-2020.  Data is restricted.  It contains a few additional fields such as RPTG_PARTY_ID (reporting market participant identifier).  Please contact Bobray Bordelon for licensing procedure.  

Lehman Brothers Fixed Income Database (Warga) (January 1973-March 1998)

Global Insight* covers governmental bonds and many international bond indexes.

Mergent Bond Record provides Moody's bond data on municipals, corporate bonds, government bonds, international bonds, convertibles, and various short term instruments. Includes charts for rating revisions, maturities, and redemptions.  HG4905.M765 (July 2000+; current issues next to (DR) HG4651.M66). For 1984-June 2000, see Film S00785. Available online 2006+ in Mergent Archives .

Annual Bond Record contains a summary of corporate and municipal bond rating activity plus preferred stocks.  (DR) HG4651.M66.  Available online 2004+ in Mergent Archives .

Standard & Poor's Bond Guide provides summary data including ratings for American corporate bonds (company as a whole as well as individual issues) and select foreign bonds and convertibles. Also contains a change in ratings summary. Microfiche 984 (1984-2001); HG4921.S8 (1971-1983; 2002-2007. Continued in Standard and Poor's Global NetAdvantage .

Standard and Poor's Global NetAdvantage . Screening tools and profile of bonds. Click on Companies and then either use the Bond Screener on the left OR under Select Publications choose Bond Reports.

In addition to the international data sources , the following is specific to China.

China Bond Market Research Database (CSMAR) :  Includes Chinese treasury, enterprise, corporate, convertible, and REPO bonds.  

  • CNNfn: The Financial Network: Bonds and Rates
  • Moody's
  • Standard and Poor's

  * Must be used for academic purposes only, that is, to support the teaching and research of Princeton University.

** WRDS requires user to validate through password. Must be used for academic purposes only, that is, to support the teaching and research of Princeton University.

Also consult the FAQs .   Bobray Bordelon  

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Corporate Bonds

Corporate bonds are debt obligations issued by corporations to fund capital improvements, expansions, debt refinancing, or acquisitions. Interest is subject to federal, state, and local taxes. Open an Account

Reasons to consider corporate bonds

  • Range of choice
  • New issues through CorporateNotes Program SM

Find corporate bonds

Features & benefits.

The range of corporate bonds issued each year allows investors to tailor a bond portfolio around their specific needs. The various types of corporate bonds offer different risk levels, as well as varying yields and payment schedules .

Fixed-rate coupons The most common form of corporate bond is one that has a stated coupon that remains fixed throughout the bond's life. It represents the annual interest rate , usually paid in two installments every six months, although some bonds pay annually, quarterly, or monthly. The payment amount is calculated as a percentage of the par value , regardless of the purchase price or current market value. With corporate bonds, one bond represents $1,000 par value, so a 5% fixed-rate coupon will pay $50 per bond annually ($1,000 × 5%). The payment cycle is not necessarily aligned to the calendar year; it begins on the "Dated Date," which is either on or soon after the bond's issue date, and ends on the bond's maturity date , when the final coupon and return of principal payment are paid.

Investment grade vs. non-investment grade (high yield) Corporate bonds are generally rated by one or more of the three primary ratings agencies: Standard & Poor's , Moody's , and Fitch. These firms base their ratings on the bond issuer's financial health and likely ability to make interest payments and return the bondholders' principal. Rated bonds fall into one of two categories: investment grade or non-investment grade (also known as high yield). Investment grade bonds are considered to be lower risk and, therefore, generally pay lower interest rates than non-investment grade bonds, though some are more highly rated than others within the category. Non-investment grade bonds are considered to be higher risk or speculative investments. The higher yield reflects an increased risk of default . A company's financial health can change, and when it does, its bonds' ratings may change as well. So an investment grade bond could become non-investment grade over time and vice versa.

Zero-coupon Zero-coupon corporate bonds are issued at a discount from face value (par), with the full value, including imputed interest, paid at maturity. Interest is taxable, even though no actual payments are made. Prices of zero-coupon bonds tend to be more volatile than bonds that make regular interest payments.

Callable and puttable The issuer of a callable corporate bond maintains the right to redeem the security on a set date prior to maturity and pay back the bond's owner either par (full) value or a percentage of par value. The call schedule lists the precise call dates of when an issuer may choose to pay back the bonds and the price at which they will do so. The callable price is generally expressed as a percent of par value, but other all-price quotation methods exist.

With a puttable security, or put option, the investor has the right to put the security back to the issuer, again at a set date or a trigger event prior to maturity. A common example is the "survivor's option," whereby if the owner of the bond dies, the heirs have the ability to put back the bond to the issuer and typically receive par value in return.

Step-up   Interest on step-up securities is paid at a fixed rate until the call date, at which time the coupon increases if the bond is not called.

Step-down Interest on step-down securities is paid at a fixed rate until the call date, at which time the coupon decreases if the bond is not called.

Floating-rate The coupon on a floating-rate corporate bond changes in relationship to a predetermined benchmark, such as the spread above the yield on a six-month Treasury or the price of a commodity. This reset can occur multiple times per year. The coupon and benchmark can also have an inverse relationship.

Variable- and adjustable-rate Variable- and adjustable-rate corporate bonds are similar to floating-rate bonds, except that coupons are tied to a long-term interest rate benchmark and are typically only reset annually.

Convertible bonds* Convertible bonds can be exchanged for a specified amount of the common stock of the issuing company, although provisions generally restrict when a conversion can take place. While these bonds offer the potential for appreciation of the underlying security, prices may be susceptible to stock market fluctuations.

* These types of corporate bonds are not available to purchase through Fidelity.

Choice The range of corporate bonds issued each year allows investors to tailor a bond portfolio around specific needs. Investors should, however, consider that each issuer has its own unique risk profile.

Secondary market An active secondary market exists for many corporate bonds, which creates liquidity for investors. Investors need to remember that some issues can be thinly traded, which may impact pricing and may pose a challenge when selling.

New issues Customers are able to access new issue corporate bonds through the CorporateNotes Program SM . Each week a limited number of new issue corporate bonds are available for purchase at par , in minimum denominations of $1,000, without additional mark-up.

Ratings Most corporate bonds are rated by at least one of the major rating agencies. Fidelity offers both investment grade and non-investment grade bonds, which are classified according to their rating. When considering an investment in corporate bonds, remember that higher potential returns are typically associated with greater risk.

Yields Corporate bonds are among the highest yielding fixed income securities. In fact, the yield differential over Treasuries may be great enough to outpace inflation over the long term. Because interest is fully taxable, buyers should evaluate their tax situations before investing.

When investing in corporate bonds, investors should remember that multiple risk factors can impact short- and long-term returns. Understanding these risks is an important first step towards managing them.

Credit and default risk Corporate bonds are subject to credit risk . It’s important to pay attention to changes in the credit quality of the issuer, as less creditworthy issuers may be more likely to default on interest payments or principal repayment . If a bond issuer fails to make either a coupon or principal payment when they are due, or fails to meet some other provision of the bond indenture, it is said to be in default. One way to manage this risk is to diversify across different issuers and industry sectors.

Market risk Price volatility of corporate bonds increases with the length of the maturity and decreases as the size of the coupon increases. Changes in credit rating can also affect prices. If one of the major rating services lowers its credit rating for a particular issue, the price of that security usually declines.

Event risk A bond’s payments are dependent on the issuer’s ability to generate cash flow. Unforeseen events could impact their ability to meet those commitments.

Call risk Many corporate bonds may have call provisions , which means they can be redeemed or paid off at the issuer’s discretion prior to maturity. Typically an issuer will call a bond when interest rates fall, potentially leaving investors with a capital loss or loss in income and less favorable reinvestment options. Prior to purchasing a corporate bond, determine whether call provisions exist.

Make-whole calls Some bonds give the issuer the right to call a bond, but stipulate that redemptions occur at par plus a premium . This feature is referred to as a make-whole call. The amount of the premium is determined by the yield of a comparable mature Treasury security, plus additional basis points . Because the cost to the issuer can often be significant, make-whole calls are rarely invoked.

Step-up coupon   If your Corporate Note has a step-up coupon schedule, the interest rate of your Corporate Note may be higher or lower than prevailing market rates. Generally, a step-up Corporate Note pays a below-market interest rate for an initial defined period (often one year). After the expiration of that initial period, the coupon rate generally increases, and the Corporate Note will pay this interest rate until the next step, at which time it changes again, and so on through the maturity date. Holders bear the risk that the step-up coupon rate might be below future prevailing market interest rates. Because step-up Corporate Notes typically include call provisions, holders also bear the risks associated with callable bonds. In this regard, it is important to understand that if your Corporate Note is called, you will not benefit from the interest payment(s) of the later step(s). The initial rate on a step-up Corporate Note is not the yield to maturity. You receive the yield to maturity (YTM) only if you hold the Corporate Note until maturity (i.e. it is not sold or called). Please review the step-up schedule and call information found in the coupon and attribute columns of the search results page or in the Statutory Prospectus.

Sector risk Corporate bond issuers fall into four main sectors: industrial, financial, utilities, and transportation. Bonds in these economic sectors can be affected by a range of factors, including corporate events, consumer demand, changes in the economic cycle, changes in regulation, interest rate and commodity volatility, changes in overseas economic conditions, and currency fluctuations. Understanding the degree to which each sector can be influenced by these factors is the first step toward building a diversified bond portfolio.

Interest rate risk If interest rates rise, the price of existing bonds usually declines. That’s because new bonds are likely to be issued with higher yields as interest rates increase, making the old or outstanding bonds less attractive. If interest rates decline, however, bond prices usually increase, which means an investor can sometimes sell a bond for more than face value , since other investors are willing to pay a premium for a bond with a higher interest payment. The longer a bond’s maturity, the greater the impact a change in interest rates can have on its price. If you’re holding a bond until maturity, interest rate risk is not a concern.

Inflation risk Like all bonds, corporate bonds are subject to inflation risk. Inflation may diminish the purchasing power of a bond’s interest and principal .

Foreign risk In addition to the risks mentioned above, there are additional considerations for bonds issued by foreign governments and corporations. These bonds can experience greater volatility, due to increased political, regulatory, market, or economic risks. These risks are usually more pronounced in emerging markets, which may be subject to greater social, economic, regulatory, and political uncertainties.

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basis point

one one-hundredth (1/100 or 0.01) of one percent; used to express the yield

Fixed Income Glossary

call provision

a feature of a bond or other security that determines the terms under which it can be redeemed by the issuer before the scheduled maturity

the interest rate a bond's issuer promises to pay to the bondholder until maturity, or other redemption event; generally expressed as an annual percentage of the bond's face value

credit risk

the risk that the issuer of a fixed-income security may not be able to make regularly scheduled interest payments or repay the principal at maturity

debt obligation/principal

an interest-bearing promise to pay a specified sum of money (the principal amount) on a specific date; bonds are a form of debt obligation; categories of bonds are corporate, municipal, treasury, agency/GSE

occurs when a bond issuer fails to make either an interest payment or principal repayment on its bonds as they come due, or fails to meet some other provision of the bond indenture

the stated value of an investment at maturity; the face value for a corporate bond is typically $1,000; also known as par value or par amount

fixed income

a type of asset class in which the investments provide a return in two possible forms; coupon paying bonds have fixed periodic payments and a return of principal; zero coupon bonds are sold at a discount, do not pay a coupon, and have a return of principal plus all accumulated interest at maturity

a contract that explains the various terms, options and intricacies of a bond

the amount paid by a borrower to a creditor, or bondholder, as compensation for the use of borrowed money

interest rate

the annual rate, expressed as a percentage of principal, payable for use of borrowed money

a government, corporation, municipality, or agency that has issued a security (e.g., a bond) in order to raise capital or to repay other debt; the issuer goes to an underwriter to get their securities sold in the new issue market; for certificates of deposit (CDs), this is the bank that has issued the CD; in the case of fixed income securities, the issuer of the security is the primary determinant of the security's characteristics (e.g., coupon interest rate, maturity, call features, etc.)

maturity, maturity date(s)

the date on which the principal amount of a fixed income security is scheduled to become due and payable, typically along with any final coupon payment. It is also a list of the maturity dates on which individual bonds issued as part of a new issue municipal bond offering will mature

an independent organization that assigns credit ratings to debt instruments and securities to help investors assess credit risk

a security publicly offered for sale for the first time

pay frequency

the frequency with which a fixed-income security pays interest (e.g., monthly, quarterly, semi-annually, yearly)

the stated value of an investment at maturity; includes bonds, life insurance policies, bank notes, currency, some stocks, and other securities; typically $1,000 for a corporate bond

if the opening price of an IPO in the secondary market is higher than its offering price, the difference would be the premium

principal repayment

the payment of the face value of a bond or CD by the issuer, this can be due to the securities reaching maturity date, or because the issuer redeemed the securities prior to maturity due to a call or other form or redemption

the act of an issuer calling, or purchasing a fixed-income security from the holder, generally at face value, prior to the stated maturity date

Standard & Poor's (S&P) Corporation

an independent company that provides investors with market intelligence in the form of credit ratings, indices, investment research and risk evaluations and solutions

debt obligations of the U.S. government that are issued at various intervals and with various maturities; revenue from these bonds is used to raise capital and/or refund outstanding debt; since Treasury securities are backed by the full faith and credit of the U.S. government, they are generally considered to be free from credit risk and thus typically carry lower yields than other securities; the interest paid by Treasuries is exempt from state and local tax, but is subject to federal taxes and may be subject to the federal Alternative Minimum Tax (AMT); U.S. Treasury securities include Treasury bills, Treasury notes, Treasury bonds, zero-coupon bonds, Treasury Inflation Protected Securities (TIPS), and Treasury Auctions

the percentage of return an investor receives based on the amount invested or on the current market value of holdings; it is expressed as an annual percentage rate; yield stated is the yield to worst — the yield if the worst possible bond repayment takes place, reflecting the lower of the yield to maturity or the yield to call based on the previous close

zero-coupon bond

a bond where no periodic interest payments are made; the investor purchases the bond at a discounted price and receives one payment at maturity that usually includes interest; they have higher price volatility than coupon bonds as a result of interest rate changes

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What Are Corporate Bonds?

The SEC's Office of Investor Education and Advocacy is issuing this Investor Bulletin to offer basic information about corporate bonds.

What is a corporate bond?

A bond is a debt obligation, like an IOU. Investors who buy corporate bonds are lending money to the company issuing the bond. In return, the company makes a legal commitment to pay interest on the principal and, in most cases, to return the principal when the bond comes due, or matures.

To understand bonds, it is helpful to compare them with stocks. When you buy a share of common stock, you own equity in the company and will receive any dividends declared and paid by the company. When you buy a corporate bond, you do not own equity in the company. You will receive only the interest and principal on the bond, no matter how profitable the company becomes or how high its stock price climbs. But if the company runs into financial difficulties, it still has a legal obligation to make timely payments of interest and principal. The company has no similar obligation to pay dividends to shareholders. In a bankruptcy, bond investors have priority over shareholders in claims on the company's assets.

Like all investments, bonds carry risks. One key risk to a bondholder is that the company may fail to make timely payments of interest or principal. If that happens, the company will default on its bonds. This "default risk" makes the creditworthiness of the company—that is, its ability to pay its debt obligations on time—an important concern to bondholders.

What are the basic types of corporate bonds?

Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the largest securities market in the world. Other components include U.S. Treasury bonds, other U.S. government bonds, and municipal bonds.

Companies use the proceeds from bond sales for a wide variety of purposes, including buying new equipment, investing in research and development, buying back their own stock, paying shareholder dividends, refinancing debt, and financing mergers and acquisitions.

Bonds can be classified according to their maturity, which is the date when the company has to pay back the principal to investors. Maturities can be short term (less than three years), medium term (four to 10 years), or long term (more than 10 years). Longer-term bonds usually offer higher interest rates, but may entail additional risks.

Bonds and the companies that issue them are also classified according to their credit quality. Credit rating agencies assign credit ratings based on their evaluation of the risk that the company may default on its bonds. Credit rating agencies periodically review their bond ratings and may revise them if conditions or expectations change.

Based on their credit ratings, bonds can be either investment grade or non-investment grade . Investment-grade bonds are considered more likely than non-investment grade bonds to be paid on time. Non-investment grade bonds, which are also called high-yield or speculative bonds, generally offer higher interest rates to compensate investors for greater risk.

Bonds also differ according to the type of interest payments they offer. Many bonds pay a fixed rate of interest throughout their term. Interest payments are called coupon payments , and the interest rate is called the coupon rate. With a fixed coupon rate, the coupon payments stay the same regardless of changes in market interest rates.

Other bonds offer floating rates that are reset periodically, such as every six months. These bonds adjust their interest payments to changes in market interest rates. Floating rates are based on a bond index or other benchmark. For example, the floating rate may equal the interest rate on a certain type of Treasury bond plus 1%.

One type of bond makes no interest payments until the bond matures. These are called zero-coupon bonds , because they make no coupon payments. Instead, the bond makes a single payment at maturity that is higher than the initial purchase price. For example, an investor may pay $800 to purchase a five-year, zero-coupon bond with a face value of $1,000. The company pays no interest on the bond for the next five years, and then, at maturity, pays $1,000—equal to the purchase price of $800 plus interest, or original issue discount , of $200. Investors in zero-coupon bonds generally must pay taxes each year on a prorated share of the interest before the interest is actually paid at maturity.

What happens if a company goes into bankruptcy?

If a company defaults on its bonds and goes bankrupt, bondholders will have a claim on the company's assets and cash flows. The bond's terms determine the bondholder's place in line, or the priority of the claim. Priority will be based on whether the bond is, for example, a secured bond, a senior unsecured bond or a junior unsecured (or subordinated) bond.

In the case of a secured bond , the company pledges specific collateral—such as property, equipment, or other assets that the company owns—as security for the bond. If the company defaults, holders of secured bonds will have a legal right to foreclose on the collateral to satisfy their claims.

Bonds that have no collateral pledged to them are unsecured and may be called debentures . Debentures have a general claim on the company's assets and cash flows. They may be classified as either senior or junior (subordinated) debentures. If the company defaults, holders of senior debentures will have a higher priority claim on the company's assets and cash flows than holders of junior debentures.

Bondholders, however, are usually not the company's only creditors. The company may also owe money to banks, suppliers, customers, pensioners, and others, some of whom may have equal or higher claims than certain bondholders. Sorting through the competing claims of creditors is a complex process that unfolds in bankruptcy court.

What are the financial terms of a bond?

The basic financial terms of a corporate bond include its price, face value (also called par value ), maturity, coupon rate, and yield to maturity. Yield to maturity is a widely used measure to compare bonds. This is the annual return on the bond if held to maturity taking into account when you bought the bond and what you paid for it.

A bond often trades at a premium or discount to its face value. This can happen when market interest rates rise or fall relative to the bond's coupon rate. If the coupon rate is higher than market interest rates, for example, then the bond will likely trade at a premium.

Bond A. Bond prices may be quoted in dollars or as a percentage of its face value. Bond A's price is 100% of the face value, or $1,000. The bond will pay 4% of the face value, or $40 per year. Most bonds are paid semiannually, so Bond A will pay $20 every six months. In addition, the bond will make a principal payment of $1,000 at the end of the 10 years. The bond pays a 4.00% yield to maturity because it is not trading at either a premium or a discount.

Bond B. Bond B's price is 90% of its face value, or $900. Notwithstanding this, investors in Bond B will still receive a total of $40 per year in coupon payments and when Bond B matures, bondholders will still receive the face value of $1,000. The discounted price results in Bond B having a yield to maturity of 5.31%.

Bond C. This bond sells for a premium at $1,100, or 110% of face value. Like Bonds A and B, investors in Bond C will receive a total of $40 per year in coupon payments and the bond's face value of $1,000 at maturity. Because of the premium price, the yield to maturity on Bond C at 2.84% is lower than the coupon rate.

What's the relationship among bond prices, interest rates and yield?

The price of a bond moves in the opposite direction than market interest rates—like opposing ends of a seesaw. When interest rates go up, the price of the bond goes down. And when interest rates go down, the bond's price goes up. As shown above, a bond's yield also moves inversely with the bond's price.

For example, let's say a bond offers 3% interest, and a year later market interest rates fall to 2%. The bond will still pay 3% interest, making it more valuable than newly issued bonds paying just 2% interest. If you sell the 3% bond, you will probably find that its price is higher than a year ago. Along with the rise in price, however, the yield to maturity for any new buyer of the bond will go down.

Now suppose market interest rates rise from 3% to 4%. If you sell the 3% bond, it will be competing with new bonds that offer 4% interest. The price of the 3% bond may be more likely to fall. The yield to maturity for any new buyer, however, will rise as the price falls.

It's important to keep in mind that despite swings in trading price with a bond investment, if you hold the bond until maturity, the bond will continue to pay the stated rate of interest as well as its face value upon maturity, subject to default risk.

What are some of the risks of corporate bonds?

Credit or default risk.

Credit or default risk is the risk that a company will fail to timely make interest or principal payments and thus default on its bonds. Credit ratings try to estimate the relative credit risk of a bond based on the company's ability to pay. Credit rating agencies periodically review their bond ratings and may revise them if conditions or expectations change.

The corporate bond contract (called an indenture ) often includes terms called covenants designed to limit credit risk. For instance, the terms may limit the amount of debt the company can take on, or may require it to maintain certain financial ratios. Violating the terms of a bond may constitute a default. The bond trustee monitors the company's compliance with the terms of its indenture. The trustee acts on behalf of the bondholders and pursues remedies if the bond covenants are violated.

Interest rate risk

As discussed above, the price of a bond will fall if market interest rates rise. This presents investors with interest rate risk, which is common to all bonds, even U.S. Treasury bonds. A bond's maturity and coupon rate generally affect its sensitivity to changes in market interest rates.

The longer the bond's maturity, the more time there is for rates to change and, as a result, affect the price of the bond. Therefore, bonds with longer maturities generally present greater interest rate risk than bonds of similar credit quality that have shorter maturities. To compensate investors for this interest rate risk, long-term bonds generally offer higher interest rates than short-term bonds of the same credit quality.

If two bonds offer different coupon rates while all of their other characteristics are the same, the bond with the lower coupon rate will generally be more sensitive to changes in market interest rates. For example, imagine one bond that has a coupon rate of 2% while another bond has a coupon rate of 4%. All other features of the two bonds—when they mature, their level of credit risk, and so on—are the same. If market interest rates rise, then the price of the bond with the 2% coupon rate will fall by a greater percentage than that of the bond with the 4% coupon rate. This makes it particularly important for investors to consider interest rate risk when they purchase bonds in a low-interest rate environment.

Inflation risk

Inflation is a general rise in the prices of goods and services, which causes a decline in purchasing power. With inflation over time, the amount of money received on the bond's interest and principal payments will purchase fewer goods and services than before.

Liquidity risk

Liquidity is the ability to sell an asset, such as a bond, for cash when the owner chooses. Bonds that are traded frequently and at high volumes may have stronger liquidity than bonds that trade less frequently. Liquidity risk is the risk that investors seeking to sell their bonds may not receive a price that reflects the true value of the bonds (based on the bond's interest rate and creditworthiness of the company). If you own a bond that is not traded on an exchange, you may have to go to a broker when you want to sell it. In addition, the bond market does not have the same pricing transparency as the equity market, as the dissemination of pricing information is more limited for corporate bonds in comparison to equity securities such as common stock.

The terms of some bonds give the company the right to buy back the bond before the maturity date. This is known as calling the bond, and it represents "call risk" to bondholders. For example, a bond with a maturity of 10 years may have terms allowing the company to call the bond any time after the first five years. If it calls the bond, the company will pay back the principal (and possibly an additional premium depending on when the call occurs).

One reason the company may call the bond back is if market interest rates have fallen relative to the coupon rate on the bond. That same decline in market interest rates would likely make the bond more valuable to bondholders. Thus, what is financially advantageous to the company is likely to be financially disadvantageous to the bondholder. Bondholders may be unable to reinvest at a comparable interest rate for the same level of risk. Investors should check the terms of the bond for any call provisions or other terms allowing for prepayment.

How can investors reduce their risks?

Investors can reduce their risks by diversifying their assets. Bonds are one type of asset, along with shares of stock (or equity), cash, and other investments.

Investors also can diversify the types of bonds they hold. For example, investors could buy bonds of different maturities—balancing short-term, intermediate, and long-term bonds—or diversify the mix of their bond holdings by combining corporate, Treasury, or municipal bonds.

Investors with a greater risk tolerance may decide to buy bonds of lower credit quality, accepting higher risks in pursuit of higher yields. More conservative investors, however, may prefer to limit their bond holdings solely to high-quality bonds, avoiding riskier or more speculative bonds.

Instead of holding bonds directly, investors can invest in mutual funds or exchange-traded funds (ETFs) with a focus on bonds. Investors should base their decisions on their individual circumstances.

How do I research my bond or bond fund investment?

A prospectus is the offering document filed with the SEC by a company that issues bonds for sale to the public in a registered transaction. Among other things, the prospectus relating to a corporate bond issuance describes the terms of the bond, significant risks of investing in the offering, the financial condition of the company issuing the bond, and how the company plans to use the proceeds from the bond sale. Similarly, if you are investing in a bond-focused mutual fund or ETF, these funds also prepare prospectuses detailing important information about the fund. Investors can ask their broker-dealer for the prospectus of any bond or bond fund in which they are interested. Prospectuses also are available to the public without charge on the SEC's EDGAR website, available at www.sec.gov/edgar/searchedgar/webusers.htm . You can also find a bond fund's prospectus at the bond fund's website.

Regular periodic reports are filed by both companies that have sold bonds in a public offering and by bond-focused mutual funds and ETFs. Companies that have sold bonds in a public offering file quarterly reports on Form 10-Q and annual reports on Form 10-K , among other filings. You can use these reports to learn about and monitor a company's financial condition. Mutual funds and ETFs file annual and semiannual reports that detail the performance and holdings of the fund. These reports are available to the public without charge on the SEC's EDGAR website. You can also often find the reports of a bond fund at the bond fund's website.

Reports on price and trading histories for particular bonds are available to the public without charge at FINRA's Market Data Center at www.finra.org/Investors/MarketData/P124134 .

Broker-dealer background checks can help investors avoid fraud. You can check the background of broker-dealers on FINRA's BrokerCheck website at www.finra.org/brokercheck .

Additional Information

For our Investor Bulletin on high-yield bonds , visit sec.gov/investor/alerts/ib_high-yield.pdf .

For more information on mutual funds generally, visit sec.gov/investor/pubs/beginmutual.htm .

For our Investor Bulletin on ETFs , visit sec.gov/investor/alerts/etfs.pdf .

For "Using EDGAR - Researching Public Companies," visit www.investor.gov/researching-managing-investments/researching-investments/using-edgar-researching-public-companies.

For our Investor Bulletin on reading a Form 10-K , visit sec.gov/investor/pubs/reada10k.pdf .

For our Investor Bulletin on reading fund reports , visit sec.gov/investor/alerts/ib_readmfreport.pdf .

For more on bonds in general, visit FINRA's Smart Bond Investing at www.finra.org/Investors/InvestmentChoices/Bonds/smartBondInvesting/Introduction/ .

For more information about credit rating agencies, visit our Fast Answer at sec.gov/answers/nrsro.htm and the website for the SEC's Office of Credit ratings at sec.gov/about/offices/ocr.shtml .

For more information about municipal bonds, see our Investor Bulletin on municipal bonds at sec.gov/investor/alerts/municipalbondsbulletin.pdf , and visit the Municipal Securities Rulemaking Board's Electronic Municipal Market Access (EMMA) website at www.emma.msrb.org .

For more educational information, visit the SEC's website for individual investors at www.investor.gov .

The Office of Investor Education and Advocacy has provided this information as a service to investors. It is neither a legal interpretation nor a statement of SEC policy. If you have questions concerning the meaning or application of a particular law or rule, please consult with an attorney who specializes in securities law.

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Prospectus for Corporate Bond

Our team at Prospectus.com can assist with your Prospectus corporate bond offering needs. What is a corporate bond? A corporate bond is when a company decides to issue debt in return for capital from an investor. Corporate bonds are a common method used to raise debt capital. As opposed to a stock or share offering where an ownership stake of some kind will be sold to investors, in a corporate bond offering no such ownership rights are transferred (unless it’s a convertible corporate bond). Instead, a company will issue debt which will include an interest payment to the bond holders, as well as the right to receive full investment back at maturity.

Our firm has been involved in corporate bond private placement offerings for over 20 years and our attorneys and consultants have written more than 5,000 private offering documents. If your company is considering raising capital for your company and need a Prospectus for a corporate bond issuance reach out to us any time.

What is Prospectus

A Prospectus is a disclosure document that is given to investors for their investment consideration. A prospectus will highlight such terms as the offering itself, the price of the securities (whether its equity or debt, i.e. stocks or bonds), and it will detail the management team, tax implications and many other regulatory disclosures. As opposed to a public offering, a Prospectus is used for a ‘private’ offering (a prospectus would be used for a public offering, for example). Investors in a prospectus can vary from accredited to non-accredited investors, venture capital, private equity and many types. The Prospectus is the most popular disclosure document used to raise capital worldwide.

Types of Prospectuses

There are many varying types of Prospectuses. The type of offering will determine the specific nature of the prospectus. The two-main private placement offering memorandum documents used throughout the world are an equity private placement or a debt private placement.

  • Equity : In an equity offering, a company will sell an ownership stake. The most common type of equity Prospectus is one that sells shares or stock in a company. In addition, a limited liability company (LLC) or a limited partnership (LP) may sell units, or limited partnership interests of the company. Some issue sweeteners, like preferred shares or preferred stock.
  • Debt : In a debt offering, a company will sell securities such as a bond or a note. In a debt Prospectus, a company will detail the securities being sold, such as the interest rate, maturity date, and other terms of the notes or bonds. In other types of debt issuance offering memorandums a company might offer convertible bonds or convertible notes. In this type of transaction, the debt securities will convert to equity at a pre-determined date.
  • Rules : In addition to debt or equity, there are various national and in some cases, international rules that apply to each Prospectus. For example, there is Rule 504, 505 and 506 of Regulation D (Reg D). Included in Reg D is also 506b and 506c offerings. There is also Regulation A (Reg A). A popular rule in the equity and debt private placement sphere is Regulation S (Reg S) and Rule 144A.

Whether you require an equity prospectus or a debt Prospectus, our team at Prospectus.com can assist.

Sections of a Prospectus

There are many features and sections that go into the writing of a Prospectus that is geared for raising capital. Here are just a few segments of the prospectus:

  • Executive Summary : an executive summary is normally a one or two-page summary of the business plan. It’s always suggested to include an executive summary in a private placement offering memorandum document as this help explain what the business does.
  • Jurisdictional Legends : the jurisdictional legends are specific country and state regulations governing the sale of securities in each jurisdiction. If it’s a US or Reg D offering, the jurisdictional legend will comprise of various states and rules for raising capital for selling stocks or bonds. If a company is raising capital worldwide they will use international legends that are country specific. Each country has their own rules regarding the flow of capital from outside investors and local investors.
  • Terms of the Offering : the terms of the offering will highlight the relevant features of the issuance. Included in the offering term section will be the stock or share price, or bond or note price, investors requirements, use of proceeds, some risks factors, and, if a debt offering, the maturity date and interest rate. The terms of the offering are the main component of a Prospectus.
  • Investor Suitability : the investor suitability section of a prospectus will deal with investor standards. For example, if a company is raising capital and is required to only accept accredited investors then this section would detail that. Or if the suitability standards allow for non-accredited investors, or non-US investors under Regulation S (Reg S), or US investors in a 144A offering, the investor suitability section will detail that, which may include net worth requirements for each investor.
  • Risk Factors : the risk factor section will deal with the pertinent risks of the business. Included in the risk factors would be industry specific risks that could materially affect the business, as well as micro and macro risks toward the company, including competitors, and factors outside the control of the company such as natural disasters, recessions and so. Listing the company’s risk factors is important as omissions can come back to haunt entrepreneurs.
  • Management Team : the management team section will showcase the team’s skills, including the CEO and the support staff, and possibly even the board of directors or an advisory board. It is wise to include the strengths of the management team as this can help build investor confidence.
  • Use of Proceeds : the use of proceeds section is one page or more that details where the company plans on spending the capital they are raising. The use of proceeds is not always the most elaborate chart, but should be a solid breakdown of the plan of where the proceeds from the offering will be spent.
  • Tax Implications : the tax section of the Prospectus will detail the implications for an investor. Most Prospectuses will not detail the specific state tax requirements so each investor would be required to speak with their local accountant. For international clients, non-US (or not from the country of one’s offering), the tax implication will be important for profit and loss and each country will have their own rules.
  • Subscription Agreement : the subscription agreement is a synopsis of the terms of the entire Prospectus and acts as the contract between the issuing company and the investor. The agreement will outline the terms of the offering, and the securities being sold, such as the bonds, notes, stocks, shares, warrants, or convertible securities.
  • Exhibits :  one of the final sections of the prospectus is the exhibits, which are ancillary data related to the business of the company or the securities being sold. Examples of exhibits that go into a Prospectus may be an image of a patent granted, or licenses or a company’s incorporation certificate.

Securities Law

A Prospectus is meant for an issuing company to be compliant with both state and federal laws, no matter where the prospectus is issued. A company selling securities wants to ensure they do not break any laws when approaching investors and are exempt for registration requirements. For an investor to make an educated decision the prospectus should contain all the noted data above, including financial projections and past financial performance and of course the risk factors of the business and industry. Risk factor information will not scare away experienced investors who are most likely well aware of such language being placed in a Prospectus. The important thing is make sure your company is compliant with securities laws and regulations when raising capital.

What About a Business Plan?

While a business plan is not always included in the Prospectus, many companies do create a section for some information related to the business. Others will create a full exhibit and put the entire business plan in that section, while others will just put an executive summary in the prospectus. The business plan is normally the first document a company would create when starting a business and most likely prior to raising capital. The business plan and the Prospectus are in many ways two sides of the coin. The business plan details the company’s plan of action, the market, strategies to engage clients and more. The Prospectus details what the investor will receive in return for their money, i.e. what kind of stocks or bonds, and what terms are attached to them and much more.

Here at Prospectus.com we are “traditionalist-specialists”. We believe that having a solid business plan is the key to creating a solid company and getting to the point where one can raise money by creating a Prospectus.

If you company requires a Prospectus or business plan, feel free to contact us anytime for a free consultation.

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corporate bond prospectus database

Corporate bonds are the safest they've been in years

  • The global high-grade credit market is the safest its been in nearly 10 years, Bloomberg reports.
  • Safer single-A bonds now make up 43.53% of the market, as investors move away from riskier triple B debt.
  • Traders have been jumping into corporate debt ahead of the expected Fed pivot.

Insider Today

Investment-grade corporate credit isn't the risk it once was, as the market's share of single A bonds nears a decade high, Bloomberg reported. 

As of late February, A-rated debt now makes up 43.54% of the global high-grade credit market, referring to bonds that are triple B or higher. The last time single A debt made up this much of the market was in early 2015, Bloomberg data shows.

Meanwhile, the group's riskiest bonds have plummeted from a 2021 high to make up 46.49% of the market. Three years prior, triple-B's accounted for over half of the index.

It's a sign that the market is normalizing from the ultra-low interest rate era that dominated in the before COVID. Near-0% rates encouraged investors to chase after risk, pulling interest away from safe assets.

Such a concentration on faultier debt spurred concern once the Federal Reserve began hiking rates in 2022, but high-grade firms have proven resilient. According to Bloomberg, this sector has notched more rating upgrades than downgrades for the past four years.

Instead, the aggressive rise in interest rates has boosted corporate credit yields, and investment-grade rates now stand at 5.4%.

Now, expectations that the Fed could soon start reversing its monetary policy has added urgency to investors to lock in these yields, causing inflows into US corporate bond funds to hit record levels . According to the Financial Times, $22.8 billion has funneled into these bonds so far this year, though that includes riskier junk bonds.

Demand is so high, the amount of extra money borrowers usually have to offer to attract buyers is at its lowest in two years.

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The World Bank Demonstrates Depth of its Capital Markets Investor Base with Dual Tranche USD 6 Billion Sustainable Development Bond Transaction

WASHINGTON, D.C., April 3, 2024 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced two Sustainable Development Bonds, raising a total of USD 6 billion from a USD 3 billion 2-year bond maturing in April 2026 and a USD 3 billion 7-year bond maturing in April 2031.

The transactions attracted over 260 orders totaling more than USD 12.7 billion. The dual tranche format, with points on the short and longer end of the yield curve, drew a globally diverse and broad base of fixed income investors and their investment strategies.  As is common with World Bank benchmark transactions, leading investor groups included central banks and official institutions, including sub-national and municipal entities, as well private sector investors including bank treasuries, pension funds, insurance companies and asset managers.

HSBC Bank plc, J.P. Morgan Securities plc, Merrill Lynch International, Wells Fargo Securities, LLC are the lead managers for both transactions. The bonds will be listed on the Luxembourg Stock Exchange.

The 2-year tranche priced at a spread versus the reference US Treasury of +8.5 basis points, resulting in a semi-annual yield of 4.764%, and the 7-year tranche priced at a spread versus the reference US Treasury of +15.3 basis points, resulting in a semi-annual yield of 4.521%.   

“This dual tranche transaction mobilized over 260 investor orders, demonstrating the wide breadth and depth of support that we enjoy from capital markets investors” said Jorge Familiar Vice President and Treasurer, World Bank .  “ This globally diverse stakeholder group is very important to the World Bank by providing financial support for its efforts to end extreme poverty and boost prosperity on a livable planet.”

Investor Breakdown by Type

Investor Breakdown by Geography

Lead Manager Quotes

“Congratulations to the World Bank team, returning to the bond market with a dual-tranche transaction and printing an impressive USD 3 billion 2-year and USD 3 billion 7-year bond on the back of a combined orderbook over USD 12.7 billion. This high-quality investor support allowed for their largest issuance since April 2021 and the largest USD dual tranche to date,” said Adrien de Naurois, Head of EMEA IG Syndicate, BofA Securities / Merrill Lynch International.

“Today’s US dollar dual-tranche transaction was a great result for the World Bank team. The trade highlights the quality and global appeal of the World Bank name and its Sustainable Development Bond format, taking a combined issue size of USD 6 billion and attracting a strong and diverse orderbook on both the 2-year and 7-year tranche. HBSC was delighted to be a part of the transaction,” said Asif Sherani, EMEA Head of Syndicate and Head of Public Sector DCM, HSBC .

“The World Bank was quick to take advantage of the constructive market tone following the holiday break, moving ahead with the first Sovereign, Supranational and Agency (SSA) US dollar new issue of the quarter.  With this well-timed transaction, the World Bank was able to achieve the largest US dollar outing of the year in the SSA market, choosing two under-supplied tenors and launching a USD 6 billion combined size across the two maturities.  Congratulations to the World Bank team for this impressive transaction,” said Sarah Lovedee, Head of Supranational DCM, J.P. Morgan.

“Utilizing good timing sense, the World Bank issued their first dual-tranche USD benchmark since March 2022. Robust demand allowed issuer to garner an orderbook more than USD 12.7 billion to price a combined USD 6 billion 2 & 7-year transaction. This issue becomes, the largest USD SSA transaction priced this year, an impressive result.  Wells Fargo is delighted to be part of this trade,” said Carlos Perezgrovas, Head SSA Origination, Wells Fargo Securities .

Transaction Summary

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 .

World Bank bonds support the financing of programs that further the Sustainable Development Goals (SDGs). World Bank bonds are aligned with the Sustainability Bond Guidelines published by the International Capital Market Association and as such support the financing of a combination of green and social, i.e., “sustainable development” projects, programs and activities in IBRD member countries as described in the  World Bank Sustainable Development Bond Framework . The World Bank is also a member of the Executive Committee of the Green Bond, Social Bond, and Sustainability Bond Principles. A key priority for the World Bank’s capital markets’ engagement is building strategic partnerships with investors to promote the importance of private sector financing in sustainable development. The World Bank’s Sustainable Development Bond  Impact Report  describes how the World Bank engages with investors on the SDGs and raises awareness for specific development challenges.

Disclaimers This press release is not an offer for sale of securities of the International Bank for Reconstruction and Development ("IBRD"), also known in the capital markets as "World Bank". Any offering of World Bank securities 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, and is subject to restrictions under the laws of several countries. World Bank securities may not be offered or sold except in compliance with all such laws. The World Bank Sustainable Development Bond Framework, the World Bank’s Sustainable Development Bond Impact Report, and the information set forth therein are not a part of, or incorporated by reference into, the offering documentation.

Net proceeds of the securities described herein are not committed or earmarked for lending to, or financing of, any particular projects or programs. Payments on the securities described herein are not funded by any particular project or program

Contact Heike Reichelt, The World Bank +1 202 477 2880 [email protected]

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IMAGES

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