WASHINGTON, October 26, 2024-World Bank Group shareholders Sweden and Iceland announced commitments to invest in hybrid capital, a financial product with leveraging potential that substantially expands the Bank's lending capacity.
Sweden and Iceland join 13 other countries that together are investing more than $11.7 billion in hybrid capital and a Portfolio Guarantee Platform, financial instruments that could expand the Bank's lending by an additional $72.5 billion over 10 years.
"It is through the generosity of our shareholders that we can invest in projects that drive development impact and address the most pressing global challenges," said Managing Director and World Bank Group Chief Financial Officer Anshula Kant. "This kind of investment translates into better health care, more jobs and greater opportunities as we build a more sustainable future."
Said Sweden's Finance Minister Elisabeth Svantesson of her country's contribution: "I am happy to announce that Sweden is planning to invest in hybrid capital. With its high leverage, this new instrument allows us shareholders to efficiently boost IBRD's financing capacity. Our investment is a testimony to Sweden's support for the impressive job that the Bank has done in updating its financial model and developing new financial innovations.
Iceland's Foreign Affairs Minister Thordis Kolbrun Reykfjord Gylfadottir said of their contribution: "The World Bank is the world's premier development institution and a priority partner in Iceland's development cooperation. Innovative financial instruments like hybrid capital are crucial to meet the growing financing needs of IBRD´s partner countries and Iceland is happy to support the Bank in that journey."
