WASHINGTON, D.C., August 20, 2024 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced a EUR 2.5 billion 7-year euro-denominated benchmark bond maturing in August 2031.
The transaction attracted over 75 orders totaling almost EUR 4 billion, from European and global investors seeking safe and liquid investment opportunities that have a positive impact on sustainable development.
BofA Securities, Deutsche Bank, Goldman Sachs International and Natixis are the joint lead managers for the transaction. The bond will be listed on the Luxembourg Stock Exchange.
The bond priced with a final spread to euro mid-swaps of +16 basis points and an equivalent annual yield of 2.604%. This equates to a spread vs. the reference Bund of +50.6 basis points.
“Our first euro-denominated deal of fiscal year 2025 has generated very strong demand from investors across the globe,” said Jorge Familiar, Vice President and Treasurer, World Bank. “With this successful issuance, we are raising EUR 2.5 billion towards impactful projects that align with our goals of reducing poverty and fostering shared prosperity on a livable planet.”
Investor Breakdown by Type
Banks/Bank Treasuries/Corporates | 49% |
Asset Managers/Insurance/Pension Funds | 24% |
Central Banks/Official Institutions | 27% |
Investor Breakdown by Geography
Europe | 74% |
Americas | 11% |
Asia | 15% |
Lead Manager Quotes
“Congratulations to the World Bank team on an impressive return to the EUR market and a strong start to the new funding year. The EUR 2.5 billion 7-year transaction is a testament to the World Bank's strong position in European markets and unwavering support from investors. The quality and diversity of the orderbook highlights investor commitment to World Bank's sustainable development activities. We are delighted to have been involved in this transaction.”. said Kamini Sumra, Managing Director SSA Origination, BofA Securities.
"With today’s transaction, the World Bank has successfully complemented its Euro curve by a new liquid line in the 7-year space. This new bond attracted a very high-quality, broad-based and diverse order book. The fact that it was able to achieve this result demonstrates the high regard that Euro investors hold for the World Bank name and the importance of its development mission. Congratulations to the World Bank team," said Katrin Wehle, Managing Director, Head of SSA DCM, Deutsche Bank.
“The World Bank continues to be a strategic issuer in the EUR market, having successfully issued a new EUR 2.5 billion benchmark in the 7-year tenor and achieving a final orderbook of approximately EUR 4 billion, demonstrating the strength of its investor base across international markets with large and diverse high-quality demand, especially from central banks andofficial institutions. Goldman Sachs is proud to be a part of World Bank’s first EUR transaction in the new fiscal year and helping them with financing their global sustainable missions.” said Dorothee Amar, Co-head of SSA, Goldman Sachs.
“The success of this transaction not only marks the re-opening of the Euro primary market after the summer, but the first trade in this strategic currency by the World Bank for the new fiscal year 2025. Despite a more volatile and uncertain backdrop for new issuances, the World Bank once again reinforced its capabilities to achieve an outstanding trade that supports its ever-important sustainable development mission. Today’s trade met the key pocket of interest by European investors resulting in a notable composition of high-quality accounts. As the World Bank continues to add liquid points to the Euro curve, the decision to return to the 7-year tenor for the first time since 2020 solidifies the demand for this highly sought after institution.” said Thomas Leocadio, Co-Head Public Sector DCM, Natixis.
Transaction Summary
Issuer: | World Bank (International Bank for Reconstruction and Development, IBRD) |
Issuer rating: | Aaa /AAA (Moody's/S&P) |
Amount: | EUR 2,500,000,000 |
Settlement date: | August 28, 2024 |
Maturity date: | August 28, 2031 |
Issue price: | 99.975% |
Issue yield: | 2.604% annual |
Denomination: | EUR 1,000 |
Coupon: | 2.6% p.a., payable annually |
Listing: | Luxembourg Stock Exchange |
ISIN: | XS2887897200 |
Clearing system: | Clearstream, Euroclear |
Joint lead managers: | BofA Securities, Deutsche Bank, Goldman Sachs International, Natixis |
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
