WASHINGTON, D.C., November 7, 2023 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced a 10-year benchmark bond that matures in November 2033. The Sustainable Development Bond raised USD 3 billion from a group of globally diverse investors to support the World Bank’s efforts to create a world free of poverty – on a livable planet.
The transaction attracted orders totaling more than USD 4.2 billion led by official institutions, followed by bank treasuries and asset managers. Investors focused on the World Bank’s triple-A credit, its classification as a high-quality liquid asset, as well as the sustainable development use of funds to achieve positive social and environmental impact in member countries.
The lead managers are BMO Capital Markets, J.P. Morgan, RBC Capital Markets, and Wells Fargo Securities. The bond will be listed on the Luxembourg Stock Exchange, offers a spread of 20.3 basis points versus the reference US Treasury, with a semi-annual yield of 4.788%.
"Many of the global investors that supported today’s transaction are some of the World Bank’s longest and most steadfast partners, helping us to multiply our impact,” said Jorge Familiar, Vice President and Treasurer, World Bank. “Their funds help us drive sustainable development and will lead to better quality of life in our member countries - access to clean air, clean water, education and better health care.”
Investor Distribution
By Investor Type | By Region | ||
Central Banks/Official Institutions | 51% | Asia | 39% |
Banks/Bank Treasuries/Corporates | 26% | Americas | 32% |
Asset Managers/Insurance/Pension Funds | 23% | Europe/Middle East/Africa (EMEA) | 29% |
Lead Manager Quotes
“A stellar outcome from the World Bank on its first US dollar 10-year benchmark in nearly two years. With continued rate volatility in the market, navigating the long-end of the curve is no simple achievement, and to do so in USD 3 billion size is impressive. BMO was delighted to have been involved in this transaction!” said Sean Hayes, Head of US Syndicate, BMO Capital Markets.
“The World Bank moved quickly to take advantage of renewed depth at the long-end of the yield curve, following the latest wave of data and central bank meetings, launching one of the largest USD 10-year benchmarks this year – an impressive feat in one of the final funding windows of the year, and demonstrative of the depth of the World Bank’s global investor base. Congratulations to the World Bank team,” said Sarah Lovedee, Executive Director, Head of Supranational DCM, J.P. Morgan.
“The World Bank seems to specialize in reopening markets after periods of significant volatility and uncertainty. This 10-year benchmark demonstrated that the World Bank retains unparalleled access to markets on behalf of its member countries and is a beacon for other borrowers to steer by. Our congratulations to the World Bank Treasury team whose market acumen and persistent investor outreach efforts are the key factors in this successful transaction,” said Jigme Shingsar, Managing Director, RBC Capital Markets.
“One could not have expected a better result for this new 10-year benchmark transaction. A large and solid orderbook with a strong component of official institutions and top-class bank treasuries and other investors. At USD 3 billion, this transaction becomes one of the largest Sovereign, Supranational and Agency (SSA) transactions of the calendar year. Congratulations to the World Bank team for getting everything right again,” said Carlos Perezgrovas, Head SSA Origination, Wells Fargo Securities.
Transaction Summary
| 10-Year Bond |
Issuer: | World Bank (International Bank for Reconstruction and Development, IBRD) |
Issuer rating: | Aaa /AAA |
Amount: | USD 3 billion |
Settlement date: | November 14, 2023 |
Maturity date: | November 14, 2033 |
Issue price: | 99.701% |
Issue yield: | 4.788% semi-annual |
Denomination: | USD 1,000 |
Coupon: | 4.750%, payable semi-annually |
ISIN: | US459058KY80 |
Listing: | Luxembourg Stock Exchange |
Clearing system: | Fedwire, Clearstream, Euroclear |
Lead managers: | BMO Capital Markets, J.P. Morgan, RBC Capital Markets and Wells Fargo Securities |
Senior co-lead managers: | BNP Paribas, CIBC and National Bank of Canada |
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 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.
Net proceeds of the bonds described herein are not committed or earmarked for lending to, or financing of, any particular projects or programs. Payments on the bonds described herein are not funded by any particular project or program.
Contact
Heike Reichelt, The World Bank
+1 202 477 2880
debtsecurities@worldbank.org
