WASHINGTON, D.C., January 3, 2024 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced a 7-year benchmark bond that matures in January 2031. The Sustainable Development Bond raised USD 5 billion from investors seeking to support the World Bank’s work to end extreme poverty and boost prosperity on a livable planet.
The transaction, the first in the Sovereign, Supranational and Agency (SSA) market in US dollars in 2024 generated the largest order book for a World Bank 7-year bond, led by bank treasuries, followed by official institutions 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 Barclays Bank PLC, BMO Capital Markets, BNP Paribas, Citigroup Global Markets. The bond will be listed on the Luxembourg Stock Exchange, pays a semi-annual coupon of 4.00%, offers a spread of 16.7 basis points versus the reference US Treasury, with a semi-annual yield of 4.082%.
“This is an outstanding result! Achieving one of IBRD’s largest ever orderbooks of over 175 investors was possible because of the World Bank’s 75-year track record as one of the most stable and predictable bond issuers,” said Jorge Familiar Vice President and Treasurer, World Bank. “This has enabled it to build a loyal, globally diverse, and ever-increasing set of investors looking to support sustainable development in our member countries.“
Investor Breakdown by Type
Banks/Bank Treasuries/Corporates | 49% |
Central Banks/Official Institutions | 35% |
Asset Managers/Insurance/Pension Funds | 16% |
Investor Breakdown by Geography
Europe / Middle East/ Africa (EMEA) | 56% |
Americas | 26% |
Asia | 18% |
Lead Manager Quotes
“Congratulations to the World Bank team for opening the USD SSA market in 2024 with a record breaking 7-year transaction, gathering the second largest orderbook ever for IBRD and their largest in this tenor. The deal once again affirms the incredible global support from the investor base for the World Bank’s development mission. It is a privilege for Barclays to have assisted the World Bank team on this landmark transaction,” said Alex Paterson, Managing Director, Head of SSA DCM, Barclays.
“Congratulations to the World Bank on an outstanding reopening of primary markets that will jumpstart 2024 USD SSA supply. The 7-year SDB achieved tremendous global investor reception with orders in excess of USD 11 billion, paving the way for very high-quality USD 5 billion deal size. BMO was thrilled to partner with the World Bank on this fantastic execution,” said Sean Hayes, Head of US Syndicate, BMO Capital Markets.
“A superb start to 2024 for the World Bank printing USD 5 billion. With final books of US 11 billion, the bold decision to open the SSA USD market in 2024 with a longer dated transaction has been rewarded and set an impressive early benchmark for supranational issuance in the new year,” said Jamie Stirling, Global Head of SSA DCM, BNP Paribas.
“Congratulations to the World Bank on opening the USD SSA market in 2024 with a new 7-year Sustainable Development Bond. The transaction saw demand from over 160 investors, with IBRD again setting the tone and momentum for the SSA sector in the new year. Citi was delighted to be a bookrunner on the transaction,” said Ebba Wexler, Head of Global Sovereign, Supranational and Agency (SSA) DCM, Citi.
Transaction Summary
| 7-Year Bond |
Issuer: | World Bank (International Bank for Reconstruction and Development, IBRD) |
Issuer rating: | Aaa /AAA |
Amount: | USD 5 billion |
Settlement date: | January 10, 2024 |
Maturity date: | January 10, 2031 |
Issue price: | 99.505% |
Issue yield: | 4.082% semi-annual |
Denomination: | USD 1,000 |
Coupon: | 4.00%, payable semi-annually |
ISIN: | US459058LA95 |
Listing: | Luxembourg Stock Exchange |
Clearing system: | Fedwire, Clearstream, Euroclear |
Lead managers: | Barclays Bank PLC, BMO Capital Markets, BNP Paribas, Citigroup Global Markets |
Senior co-lead managers: | CastleOak Securities, L.P., Daiwa Capital Markets Europe Limited, National Bank of Canada Financial Inc. and The Bank of Nova Scotia, London Branch |
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
