WASHINGTON, D.C., January 11, 2023 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) priced its first Euro-denominated benchmark of 2023, a EUR 3 billion 10-year Sustainable Development Bond maturing in January 2033. IBRD’s Euro benchmark transaction attracted over 100 orders totaling more than Euro 4.3 billion from European and global investors.
BNP Paribas, Deutsche Bank, Natixis and Nomura are the lead managers for the transaction. The bond will be listed on the Luxembourg Stock Exchange.
The bond priced with a final spread to mid-swaps of +11 basis points and an equivalent annual yield of 2.910%. This equates to a spread vs. the reference Bund of 71.3 basis points.
“In a busy new year period for the markets we are extremely pleased with the response from investors for this Sustainable Development Bond,” said Jorge Familiar, Vice President and Treasurer, World Bank. “Funds raised by the World Bank in the capital markets are supporting its member countries as they respond to the many overlapping challenges being faced by those most in need, such as slowing global growth and elevated inflation.”
Investor Distribution
By Investor Type | By Geography | ||
Asset Managers/Insurance/Pension Funds | 25% | Germany | 13% |
Banks/Bank Treasuries/Corporates | 54% | France | 25% |
Central Banks/Official Institutions | 21% | Rest of Europe | 53% |
|
| Others | 9% |
Joint Lead Manager Quotes
“The World Bank’s first Euro benchmark since 2021 attracted an impressive volume of European high quality real money investor demand. Upsizing to the final Euro 3 billion deal size is an excellent achievement and equals their largest ever benchmark in the currency, particularly remarkable in the context of an incredibly active primary market with multiple issuances since the beginning of the year. Congratulations to the World Bank Treasury team for smoothly navigating a very busy market and delivering a great outcome,” said Jamie Stirling, Global Head SSA DCM, BNP Paribas.
“We congratulate the World Bank on another landmark trade in the Euro market. The new 3 billion 10-year marks the largest Euro Sustainable Development Bond from IBRD in two years and establishes a liquid anchor point in IBRD’s Euro curve. We were impressed by the dynamic order book growth and outstanding quality and depth of the demand in a very busy new issue environment. The fact that investors chose the World Bank for their investment is a testament to the appeal of IBRD’s important work in the financing of sustainable development activities in its member countries. Deutsche Bank is proud to have participated in this transaction,” said Katrin Wehle, Head of SSA DCM Origination, Deutsche Bank.
“The World Bank managed to price a strong Sustainable Development Bond benchmark in a busy beginning of year window. In returning to this part of the curve, the World Bank has reaffirmed their commitment to the Euro market which has been strongly welcomed by the investing community. It is always a pleasure to partner with the World Bank and we look forward to the continued future success,” said Thomas Leocadio, Co-Head of SSA, Natixis.
“Another fantastic trade to add to the World Bank’s program. With over a year of absence from the Euro market, this trade in a core benchmark maturity was certainly worth the wait. As always, the presence of official sector and real money investors again show why the World Bank retains the broadest of market access,” said Spencer Dove, Managing Director, SSA Debt Capital Markets, Nomura.
Transaction Summary
Issuer: | World Bank (International Bank for Reconstruction and Development, IBRD) |
Issuer rating: | Aaa /AAA (Moody's/S&P) |
Amount: | EUR 3,000,000,000 |
Settlement date: | January 19, 2023 |
Maturity date: | January 19, 2033 |
Issue price: | 99.914% |
Issue yield: | 2.910% annual |
Denomination: | EUR 1,000 |
Coupon: | 2.900% p.a., payable annually |
Listing: | Luxembourg Stock Exchange |
ISIN: | XS2577109049 |
Clearing system: | Euroclear/Clearstream |
Joint lead managers: | BNP Paribas, Deutsche Bank, Natixis and Nomura |
For more information on the World Bank Group and COVID-19: www.worldbank.org/en/who-we-are/news/coronavirus-covid19
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, the World Bank’s Sustainable Development Bond Impact Report, and the information set forth therein are not a part of, or incorporated by reference into, the offering documentation.
Contact
Investor Relations and Sustainable Finance | World Bank Treasury |
debtsecurities@worldbank.org
