World Bank Prices First CAD Sustainable Development Bond of 2022 and Highlights Health and COVID-19 Response Efforts

WASHINGTON, D.C., January 6, 2022 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced a new 5-year CAD 1.5 billion benchmark that matures on January 19, 2027. The World Bank launched the Sustainable Development Bond while raising awareness for the World Bank’s strategy, projects and programs that focus on strengthening health systems and ongoing efforts to help member countries as they work to contain the spread and impact of COVID-19.

The 5-year benchmark transaction pays a semi-annual coupon of 1.800% p.a. and has an issue price of 99.829% and a final spread of 36.55 bps over the CAN 1.00% September 2026 reference bond, offering investors a yield of 1.836% (semi-annual). Joint lead managers for this transaction are BMO Capital Markets, National Bank Financial Markets, RBC Capital Markets and TD Securities.

Jorge Familiar, Vice President and Treasurer, World Bank, said “We are extremely pleased with our first Canadian dollar benchmark transaction of the new year and are grateful to investors for their support for the World Bank’s sustainable development activities, including ongoing efforts around strengthening health systems and work that helps contain the spread and impact of COVID-19. This work remains critical to supporting countries as they strengthen their pandemic response and social protection measures for the poor and vulnerable while supporting businesses and safeguarding jobs.”

Investor Distribution 

Sean Hayes, Managing Director & Head, US Syndicate & Credit Sales, BMO Capital Markets, said, “For a fifth consecutive year, World Bank re-opens SSA Canadian dollar primary markets. Pricing CAD 1.5 billion in size, World Bank stands alone as the only international SSA borrower to achieve this large milestone, thanks to high quality Canadian domestic and international investor demand. The consistency of World Bank’s presence in Canadian dollar debt capital markets is what has driven the ongoing investor partnerships in support of World Bank’s sustainable development mission. Congrats to World Bank, BMO was pleased to be involved in this resounding success.”

Scott Graham, Managing Director, National Bank Financial Markets, said, “Once again, the World Bank demonstrated its leadership and commitment to the Canadian fixed income markets by executing the first Maple transaction of 2022. The transaction was met with overwhelming demand from investors around the world and resulted in a book in excess of CAD 1.75 billion. The large domestic and asset management participation is a sign the Canadian sustainable finance market continues to mature. NBF could not be any prouder to partner with the World Bank.”

Jigme Shingsar, Managing Director, RBC Capital Markets, said, “World Bank has reopened the CAD market in style, and this will obviously provide a key benchmark for others to emulate. Investor demand for World Bank’s latest CAD Sustainable Development Bond was significant and diverse – most gratifying is the continued growth of the domestic investor base – a reward for all the hard work the funding team has done to develop the ESG investor base in Canada over many years.”

Laura O'Connor, Managing Director, Fixed Income Origination & Syndication, TD Securities, said, "We congratulate the World Bank for successfully opening the Maple market in 2022 with an impressive 5-year CAD 1.5 billion Sustainable Development Bond. The transaction was well timed against the backdrop of wider swap spreads, generating broad investor interest from the outset. The compelling relative value resulted in a final order book in excess of CAD 1.75 billion.TD was delighted to be involved in this stellar transaction from World Bank."

Summary Terms:

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

Net proceeds of the bonds described herein are not committed or earmarked for lending to, or financing of, any particular projects or programs, and returns on the bonds described herein are not linked to the performance of any particular project or program.

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 and the information set forth therein are not a part of, or incorporated by reference into, the offering documentation.

Contact

Heike Reichelt
Head of Investor Relations and Sustainable Finance
World Bank Treasury
debtsecurities@worldbank.org