Washington, D.C., July 10, 2024 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) priced a 7-year British pound sterling (GBP) benchmark bond due July 2031. The GBP 750 million Sustainable Development Bond (SDB) attracted investors interested in a safe and liquid product as well as providing support to the World Bank and its efforts to help countries to find solutions to their development efforts.
The bond offers an annual coupon of 4.125% and an annual yield of 4.181%. It was priced at +19.6 basis points over the 0.25% UK Gilt due July 2031. BofA Securities, Barclays Bank PLC, Citigroup Global Markets Limited and RBC Europe Limited are joint lead managers for the transaction. The bond will be listed on the Luxembourg Stock Exchange.
“This benchmark transaction jumpstarts what we expect to be a dynamic and productive fiscal year funding program for IBRD” said Jorge Familiar, Vice President and Treasurer, World Bank. “We appreciate the strong support from sterling investors and look forward to a year with a variety of offerings in currencies and tenors, all to be used to finance the World Bank’s sustainable development activities.”
Investor Distribution
By Geography |
| By Investor Type |
|
United Kingdom | 81% | Banks/Bank Treasuries/Corporates | 75% |
Americas | 14% | Asset Managers/Insurance/Pension | 17% |
Europe/ Middle East / Asia | 5% | Central Banks/Official Institutions | 8% |
“Congratulations to the World Bank team for their first public transaction of the new fiscal year with a landmark 7-year GBP transaction, securing the tightest spread to Gilts for a fixed rate Sovereign, Supranational and Agency (SSA) benchmark in this tenor in more than a decade. Achieving such a strong result reconfirms the World Bank’s leadership in the SSA market as well as the longstanding support from the global investor base. It is once again a privilege for Barclays to have assisted the World Bank team in this market,” said Alex Paterson, Managing Director, Head of SSA DCM, Barclays.
“A GBP 750 million transaction in the 7-year maturity reconfirms the strong and consistent support the issuer receives for its sustainable development purpose from the sterling investor base. The 7-year tenor complements IBRD’s sterling curve nicely and achieved robust demand from the UK bank treasury and real money community. BofA Securities is delighted to have supported the World Bank with this transaction,” said Kamini Sumra, Managing Director, SSA Origination, BofA Securities.
“Many congratulations to the World Bank team for a successful new 7-year benchmark, the first in this tenor since September 2023. The transaction saw a broad range of investors participate, again evidencing the World Bank’s standing among the UK and international investor community. Citi was delighted to be involved in this great outcome,” said Ebba Wexler, Head of SSA Debt Capital Markets, Citi.
“The World Bank’s return to the GBP market was an important demonstration of the continued liquidity and depth of the market. Doing so with a GBP 750 million 7-year SDB benchmark – the largest GBP benchmark since April – is a testament to the World Bank's investor outreach as well as the track record of success that gives the market comfort. Congratulating the World Bank for reopening markets never gets old,” said Jigme Shingsar, Managing Director, SSA DCM, RBC.
Transaction Summary
Issuer | World Bank (International Bank for Reconstruction and Development, IBRD) |
Issuer rating: | Aaa / AAA |
Amount: | GBP 750,000,000 |
Settlement date: | July 18, 2024 |
Maturity date: | July 31, 2031 |
Issue price: | 99.662% |
Issue yield: | 4.181% annual |
Denomination: | GBP 1,000 |
Coupon: | 4.125% p.a., payable annually |
Coupon payment dates: | Annually, every July 31 |
Listing | Luxembourg Stock Exchange |
ISIN | XS2861554645 |
Clearing systems | Euroclear/Clearstream |
Joint lead managers | BofA Securities, Barclays Bank PLC, Citigroup Global Markets Limited, RBC Europe Limited |
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 (ICMA) 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, 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 project or program.
Contact
Investor Relations and Sustainable Finance | World Bank Treasury | debtsecurities@worldbank.org
