World Bank Inaugurates Fiscal Year with 5-Year USD 4 Billion Sustainable Development Bond

WASHINGTON, D.C., July 12, 2022 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) launched its 2023 fiscal year with the pricing of a 5-year benchmark bond that matures in June 2027.  The Sustainable Development Bond raised USD 4 billion to support the World Bank’s mission to combat poverty and boost shared prosperity in developing countries.    

The transaction, executed in a period of heightened market volatility, attracted 100 orders totaling more than USD 5.6 billion by appealing to investors seeking high credit quality and a sustainable investment.  The globally diverse investors included central banks, bank treasuries and asset managers, among other groups, and also included several first-time investors.

Citi, Nomura, TD Securities and Wells Fargo are the lead managers. The bonds will be listed on the Luxembourg Stock Exchange, offers a spread versus the reference US Treasury of +15.5 basis points and has a semi-annual yield of 3.137%.   

"Multiple, overlapping global shocks are creating deep direct human and economic impacts and creating adverse spillovers in developing countries, threatening to reverse decades of development gains,” said Jorge Familiar Vice President and Treasurer, World Bank. “We are thankful for the investors in today’s US dollar benchmark bond, who through their partnership are helping us support a sustainable response to these challenges.”

Investor Breakdown by Type

Investor Breakdown by Geography

Lead Manager Quotes

“Congratulations to the World Bank funding team on delivering such a successful transaction to kick off its benchmark funding program for the new fiscal year.  In a challenging market environment, the World Bank was able to achieve a high quality and geographically diverse orderbook, a testament to the World Bank’s ability to engage with investors from across the world to mobilize capital for sustainable development. Citi is delighted to have been appointed bookrunner,” said Ebba Wexler, Managing Director, Public Sector DCM, Citi.

“Against one of the most challenging USD market backdrops for years, the World Bank has again demonstrated leadership with an extremely successful benchmark, marking a great start to their new fiscal year and program. To garner an orderbook of this size, quality and granularity is impressive in normalized markets but extraordinary today. Congratulations to the World Bank team, it has been Nomura’s pleasure to have worked together with you on such a memorable transaction,” said Spencer Dove, Managing Director, Head of DCM SSA, Nomura.

“We congratulate the World Bank for demonstrating market leadership amidst a volatile market backdrop. The 5-year maturity fitted investor demand perfectly and resulted in broad support from the full global reach of the World Bank investor base that recognizes the safe-haven status of the World Bank name. This USD Sustainable Development Bond benchmark is a superb start to the new fiscal year for the World Bank and comes at a critical time for the economies of developing countries. Congratulations to the World Bank treasury team,” said Laura O'Connor, Managing Director, Fixed Income Origination & Syndication, TD Securities.

“In this market it’s all about timing, and the World Bank team got it right--what a strong performance! The Sovereign, Supranational and Agency (SSA) space needed a success story after all of the recent market volatility, and no better result than an oversubscribed deal with a high-quality book that tightened 2 basis points from Initial Price Talks. The choice of tenor was crucial, as it tapped the pent-up demand in the middle part of the curve while avoiding the challenging volatility in shorter tenor swap spreads. Wells Fargo Securities is honored to be part of the World Bank's first USD benchmark of their new funding year,” said Carlos Perezgrovas, Head SSA Origination, Wells Fargo Securities.

Transaction Summary

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

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.

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.

Contact

Heike Reichelt, The World Bank
+1 202 477 2880
debtsecurities@worldbank.org