Did you know that the World Bank creates its own bonds…and has done so since 1989?
The World Bank sells something called Continually Offered Longer-Term Securities (COLTS) to fund its operations; they provide financial aid to developing nations. COLTs range in length from three to 30 years. They are either zero coupon, fixed-rate or variable-rate bonds.
The World uses this capital to offer grants, as well as zero-interest and low-interest loans to nations to fund educational, agricultural, and health initiatives, in addition to other endeavors tied to economic growth and development.