Fukoku Life Invests in World Bank Bonds and Highlights Support for Education During COVID-19

TOKYO, September 24, 2020 – World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) issued a 20-year USD 70 million Sustainable Development Bond while engaging with investors to highlight the importance of access to education for children and young people following the spread of COVID-19.

Fukoku Mutual Life Insurance Company (Fukoku Life) was the sole investor in this transaction and Morgan Stanley & Co International PLC is the sole underwriter and distributor of the bond.

Yoshiyuki Arima, Japan Representative, World Bank Treasury, said, “Access to education is a priority for the World Bank and key to our mission to end extreme poverty and boost shared prosperity. We are pleased to see investor interest in communicating the sustainable purpose of their investment and raising awareness for the need to ensure continued access to quality education as countries grapple with the effects of the COVID-19 pandemic.”　

Takehiko Watabe, Director and Managing Executive Officer, Fukoku Mutual Life Insurance Company, said “Fukoku life has supported children as a corporate activity including donations to the Children’s Cancer Association of Japan for 15 years since 1968. Fukoku life is very pleased to support the World Bank’s sustainable development activities including children’s education in developing countries during COVID-19 pandemic and engage with the World Bank as the first investor to highlight the importance of education during COVID-19 pandemic through investment. As a mutual life insurance company with a strong focus on the public, we strive to be an organization that promotes real mutual aid based on a corporate concept which is called “THE MUTUAL”.  In terms of asset management for our stakeholders, collaboration with the World Bank helps us achieve not only a financial benefit through investment, but also contribute positively to society in line with our company philosophy.”

Yuki Hashimoto, Managing Director, Head of Fixed Income Division in Japan at Morgan Stanley, said, “This new Sustainable Development Bond demonstrates the willingness of investors such as Fukoku Mutual Life Insurance Company to take an active role in the COVID-19 pandemic response, especially when it comes to critical themes such as youth support and education. As the coronavirus pandemic takes its toll—and impacts are felt most acutely in vulnerable communities and by children around the world, we are proud to connect capital to institutions like the World Bank, capable of addressing the biggest threats facing future generations at the scale that is necessary to meaningfully improve education, health, and environmental outcomes.”

World Bank bonds support the financing of sustainable development projects and programs across a range of sectors in member countries to achieve positive social and environmental impacts in member countries. These projects are particularly important in the context of COVID-19, and the World Bank Group is aiming to deploy up to USD150-160 billion in financing as part of its pandemic response programs. These programs include projects that support the education of children and youth globally.