The World Bank (International Bank for Reconstruction and Development, IBRD rated Aaa/AAA) has raised an additional AUD 50 million for its Kangaroo bond due August 2020 – the first bond created, allocated, transferred and managed through its life-cycle using distributed ledger (blockchain) technology.
The successful tap expands market participation with the Bond-i platform combining three joint lead managers, Commonwealth Bank of Australia (CBA), RBC Capital Markets (RBC) and TD Securities (TD), and brings together new market participants, including an offshore investor, and the exisiting investor community including ongoing support and input from TCorp (NSW Treasury Coporation).
In August 2018, CBA was mandated by the World Bank as arranger for the bond and following a two-week consultation period with the market, the two-year bond raised A$110 million. In May 2019, CBA and the World Bank, with TD acting as market maker, added additional capability to the platform by enabling Secondary Bond Trading recorded on Blockchain making this the first bond whose issuance and trading are recorded using distributed ledger technologies.
The subsequent issuance builds on the success of the platform and further enables capital markets to leverage distributed ledger technologies for faster, more efficient, and more secure transactions.
Bond-i is part of a broader strategic focus of the World Bank to harness the potential of disruptive technologies for development to benefit the World Bank’s clients. The World Bank’s blockchain innovation lab was established in 2017 as an innovation hub for poverty reduction projects across the world and includes developing opportunities to use blockchain and other disruptive technologies in areas such as land administration, supply chain management, health, education, cross-border payments, and carbon market trading.
“We are happy to see the continued, strong support and collaboration from investors and partners. The World Bank’s innovation and experience in the capital markets is key to working with our member countries to increase digitization to boost productivity in their economies and accelerate progress towards the Sustainable Development Goals,” said Andrea Dore, World Bank Head of Funding.
“The tap is an important milestone in demonstrating the full lifecycle management of an issuer’s capital markets needs. It is also a significant step for the platform bringing on additional participants and demonstrating the broader potential of Bond-i as a capital markets platform,” said James Wall, Executive General Manager International at Commonwealth Bank.
Debt capital markets today comprise numerous interconnected intermediaries and agents undertaking intersecting roles for markets to function. Blockchain has the potential to streamline processes for raising capital and trading securities, improve operational efficiencies, as well as enhance regulatory oversight.
“CBA now has tangible evidence from our first bond offering using blockchain technology and subsequent bond management, secondary trading and tap issue via the same platform, that blockchain technology can deliver a new level of efficiency, transparency and risk management capability versus the existing market infrastructure. Next we intend to deliver additional functionality to deliver greater efficiencies in settlement, custody and regulatory compliance,” said Sophie Gilder, Head of Blockchain & AI, Commonwealth Bank of Australia.
CBA, RBC, and TD have been lead managers for a number of IBRD bond issuances in the Australian and New Zealand capital markets. This issuance built on the longstanding partnership between four organisations, bringing together World Bank’s 70-year track record of innovation in the capital markets, CBA’s globally recognised Blockchain Centre of Excellence, and TD and RBC’s significant global franchises in debt capital markets.
“An increase to the line is a natural evolution for the trade providing a great opportunity for both new and existing investors to get involved. As a market maker on the platform, TD is very excited to have partnered up with World Bank and CBA again and be part of the next step in the platform’s development,” said Yuriy Popovych, Director TD Securities.
“RBC is very pleased to be involved in the next stage of evolution of World Bank’s bond-i issue, the most advanced practical application of blockchain technology to the debt capital markets to-date,” says Jigme Shingsar, Managing Director, Debt Capital Markets at RBC. “Though the technology is still in its early stages, we believe blockchain networks have the potential to transform financial services, offering a leap forward in the transparency and efficiency of our market.”
The blockchain platform was designed and developed by the CBA Innovation Lab’s Blockchain Centre of Excellence.
· An independent review of the CBA blockchain platform’s architecture, security and resilience was conducted by Microsoft.
· The law firm of King & Wood Mallesons acted as deal counsel on the bond issue and advised on the legal architecture for its implementation.
New Study Offers Pathways to Climate-Smart Transport
A two-volume study laying out a pathway to a low-carbon and climate-resilient transport sector in Vietnam was released at a workshop on Addressing Climate Change in Transport, held in Hanoi today.
This analytical work comes at a critical time when the Government of Vietnam is updating its Nationally Determined Contribution on reducing carbon emissions and set out its next medium-term public investment plan for 2021-2025.
“A resilient transport system is critical to the continued success of Vietnam’s economy, which relies heavily on external trade and seamless connectivity,” said Ousmane Dione, World Bank Country Director for Vietnam. “We hope that the findings and recommendations of this new report will help Vietnam in its efforts to achieve a resilient and sustainable transport sector.”
The first volume demonstrates that by employing a mix of diverse policies and investments, Vietnam can reduce its carbon emissions in the transport sector up to 9 percent with only domestic resources by 2030, and 15-20 percent by mobilizing international support and private sector participation.
Currently, the transport sector contributes about 10.8 percent of the total CO2 emissions. In a business-as-usual scenario, these emissions are projected to grow at an annual rate of 6-7% to nearly 70 million tons CO2e. The most cost-effective measures to boost the resilience of the transport sector include shifting traffic from roads to inland waterways and coastal transport, deploying stricter vehicle fuel economy standards, and promoting electric mobility.
The second volume provides a methodological framework to analyze critical and vulnerable points of the transport network, and presents a strong economic case for investing in building the climate resilience of Vietnam’s transport networks. A vulnerability assessment looks at the potential impact of different hazards on the transport corridor or network, and the criticality assessment considers such questions as which links and routes along transport networks are the most critical for the unimpeded flow of transport across a particular transport network.
The study identifies systemic critical issues and hazard-specific, high-risk locations in Vietnam’s transport network. Considering climate change, it is estimated that 20 percent of the network is most critical in terms of its exposure to future disaster risks. Meanwhile, road failures can result in very high daily losses of up to US$1.9 million per day, while railway failures can result in losses as high as US$2.6 million per day.
To prepare for the increasing intensity and frequency of extreme hazards due to climate change, it is imperative to make investments to overhaul existing road assets to higher climate-resilient design standards.
Given the vulnerability of land-based transport, a shift to waterborne transport offers a good resilience strategy. A 10-percent shift in that direction could reduce climate risks by 25 percent, according to the report.
This report is a collaborative effort among the Vietnamese Ministry of Transport, the World Bank and Deutsche Gesellschaft für InternationaleZusammenarbeit GmbH (German Development Cooperation GIZ) under the commission by the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU). It is sponsored by the Australian Government through the Australia-World Bank Group Strategic Partnership in Vietnam – Phase 2 (ABP2) program.
UN General Assembly celebrates 20 years of promoting a culture of peace
Just as the greatest global challenges cannot be solved by a single country, peace cannot be pursued in isolation, outgoing UN General Assembly President María Fernanda Espinosa said on Friday.
Ms. Espinosa was speaking at a high-level forum to mark the 20th anniversary of the General Assembly’s adoption of a Declaration and Programme of Action on a Culture of Peace.
“Because peace is more than the absence of war, it needs constant nurturing through the pursuit of dignity and equality, of human rights and justice, of respect and understanding, and of cooperation and multilateralism”, she said.
As UN Chef de Cabinet Maria Luiza Ribeiro Viotti pointed out, although peace is at the heart of the work of the United Nations, it is something that must be addressed daily.
“A culture of peace is inseparable from human rights, respect for diversity, and fairer societies,” she said.
“One main challenge as we strive to achieve the Sustainable Development Goals is to build more preventive and inclusive approaches that ensure the participation of women, young people and vulnerable, marginalized and non-represented groups.”
The Chef de Cabinet said working to achieve peace not only covers traditional notions of security but also challenges such as social injustice, the normalization of hate speech, terrorism, violence against women, and conflict.
Leymah Gbowee from Liberia knows many of these issues first-hand. She won the 2011 Nobel Peace Prize for her role in uniting Christian and Muslim women to help end her country’s 14-year civil war.
She said peace is seen as the absence of bad, rather than the presence of good. However, instead of being “a fairytale of bland happiness”, she views it as quite radical.
“If we dig a little deeper into what a culture of peace actually looks like, it pushes us beyond understanding peace as the absence of conflict and being a positive state itself”, Ms. Gbowee told the gathering.
“A culture of peace creates an environment where people thrive and have their needs met. It looks like a population of satisfied people: healthy children, educated children, a functional health system, responsive justice structure, an empowered, recognized, appreciated and fully compensated community of women; food on the table of every home, and a lot more. It is the full expression of human dignity.”
The high-level commemorative event marked Ms. Espinosa’s final session presiding over the General Assembly, where all 193 Member States have equal representation.
In her goal to bring the UN’s main deliberative and policy-making organ closer to everyday people, she chose the traditional ruler of the Ashanti people of Ghana to deliver the keynote address: a historic first.
Representing a kingdom that has existed since the 17th century, Otumfuo Osei Tutu II ascended the podium wearing kente cloth and accompanied by two praise-singers.
He highlighted some of the UN’s accomplishments in preserving global security: for example, staving off nuclear war and preventing conflict between nations. However, as he observed, the landscape today is different.
“Warfare is no longer the threat we face from states; it is now a danger we face on a daily basis from our citizens and from all quarters. This new threat comes on the heels of an unprecedented trust deficit in political leadership at the national level. The effect of this trust deficit is to erode the capacity of political leaders to rally their people to coalesce around national interests. The consequence for peace and security cannot be overstated”, he said.
The Ashanti leader called for a new partnership between elected authorities and traditional governance, in the spirit of authentic collaboration.
European Solidarity Corps: Three years on
Tomorrow is the third anniversary of President Juncker’s 2016 State of the Union announcement to set up a European Solidarity Corps, offering young people the opportunity to take part in a wide range of solidarity activities across the EU.
Since then, more than 161,000 young people between 18 and 30 have signed up to join the Corps, and the initiative has made a difference in many people’s lives. Most of the activities funded offer opportunities to volunteer – individually or in teams. But young people can also benefit from traineeships and jobs. Moreover, young people themselves can set up solidarity projects where they initiate, develop and run activities to contribute to positive change in their community, while living abroad and gaining valuable skills.
Commissioner for Education, Culture, Youth and Sport, Tibor Navracsics, said: “We have achieved a lot in the last three years. In record time we put in place a new programme opening up opportunities for young people and organisations to support others, helping us build a more cohesive, caring society. I am proud to see so many young people eager to get involved and active in projects on the ground. Their enthusiasm is truly inspiring. This is why I have proposed to extend and strengthen the European Solidarity Corps after 2020.”
Inclusion is one of the most common topics tackled by European Solidarity Corps projects but not the only one. Other topics are youth work, climate change, community development, citizenship, education and culture. Tens of thousands more opportunities are expected to be created in the following months and years in these fields. Moreover, one in three of the activities funded by the European Solidarity Corps are reserved for participants with fewer opportunities who face obstacles such as disabilities, educational difficulties, or economic, social or geographical obstacles.
For instance, in Latvia, a project entitled “A special place for special people” promotes the integration of young people with disabilities into the labour market by employing them and involving them in all the activities of a social enterprise café in Riga. In Greece, volunteers help protect the forest of Xylokastro and Derveni by taking care of watering and planting trees, as well as cleaning the forest paths. And in Sweden, through the project “Climate Awareness”, volunteers learn about climate change and biodiversity by helping in the organic garden and ecovillage and participating in outreach activities. As an example of a project initiated by volunteers themselves, in Lithuania, five participants from a centre for disabled young people set up their own Solidarity Coffee project, enabling them to form new friendships and build personal connections with the wider community.
In his State of the Union address of September 2016, President Juncker announced the creation of a European Solidarity Corps, providing opportunities for young Europeans to engage in solidarity activities and contribute to society as part of the Commission’s broader strategy to invest in young people. The Corps responds to a real interest among young people to engage in social projects. In a Eurobarometer survey published in spring 2019, more than half of the young respondents said they had participated in volunteering activities or local community projects. Three in four stated that they had been engaged in organised movements or volunteering.
A mere 3 months after President Juncker’s announcement, on 7 December 2016, the Solidarity Corps was launched, with the aim of having 100,000 young people taking part by the end of 2020. During an initial phase, eight different EU funding programmes were mobilised to offer volunteering, traineeship or job opportunities.
On 30 May 2017, the Commission put forward a proposal to equip the European Solidarity Corps with a single legal base, its own financing mechanism and a broader set of solidarity activities. The new Regulation came into force on 5 October 2018 and the Corps has its own budget of €375.6 million until 2020.
The first calls for proposals were launched in August and November 2018, creating some 20,000 new opportunities. Another call for proposals is currently open, with an application deadline of 1 October 2019, and is set to create another 7,000 opportunities. This call invites organisations with a quality label to apply for grants and set up projects for young people to volunteer, work or go on traineeships. Groups of young people can also apply to run a solidarity project themselves. Young people interested in taking part in a funded project can directly sign up on the European Solidarity Corps Portal.
On 11 June 2018, the Commission put forward its proposal for the European Solidarity Corps under the EU’s next long-term budget 2021-2027, allocating €1.26 billion to enable about 350,000 young people to go on a solidarity placement over seven years.
Saudi oil attacks put US commitments to the test
Neither Saudi Arabia nor the United States is rushing to retaliate for a brazen, allegedly Iranian attack that severely damaged...
‘Six weeks of Indian Disinformation in Kashmir Lockdown’
The Indian curfew in Srinagar, capital to Jammu and Kashmir territory climbs to six weeks. Not only are the roads...
U.S. Fracking Will Continue Its Forward March
The Abqaiq attack in Saudi Arabia by Iran, or one of its proxies is the largest oil and petrochemical disruption...
Growing Tensions on the Road to Persian Gulf Security
The 14 September 2019 drone attacks on oil installations in eastern Saudi Arabia have dimmed hope for U.S. – Iranian...
The drone attacks on Saudi Arabia’s oil wells
In the early morning of Saturday, September 14 last, at 3.31 and 3.42 a.m., the Yemeni Houthi Shiite rebels supported...
My best friend is my psychiatrist
I’ll leave the pain for tomorrow. Won’t even think about it until tomorrow. That is, if tomorrow ever comes. So,...
If we want sustainable development, we have to work together
The Sustainable Development Goals (SDGs) is our plan for the future. It aims to transform our world and to improve...
South Asia1 day ago
Abrogation of Article 370 and Pakistan’s Pathetic Response
Russia2 days ago
Eurasia’s Great Game: India, Japan and Europe play to Putin’s needs
Middle East3 days ago
New intrigue over nuclear deal
Americas3 days ago
Politics as Reflection: Even in an Election Year, Real Change Must Come From “Below”
Science & Technology3 days ago
Digitally shaping a greener world
South Asia3 days ago
Pakistan’s peace-loving gestures are considered its weakness, unfortunately
Environment2 days ago
New Study Offers Pathways to Climate-Smart Transport
Eastern Europe1 day ago
Foreign Affairs of the Absurd: The Strange Case of Abkhazia 2019