Washington, D.C., October 15, 2024 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced a 10-year GBP-denominated benchmark bond that matures in October 2034. The Sustainable Development Bond raised GBP 700 million from global investors to support the financing of World Bank’s sustainable development activities in its member countries.
The bond offers an annual coupon of 4.25% and an annual yield of 4.321%. It was priced at +11.3 basis points (bps) over the 4.5% UK Gilt due September 2034. Citi, Morgan Stanley, NatWest Markets and Santander are joint lead managers for the transaction. The bond will be listed on the Luxembourg Stock Exchange.
“We are happy to be able to offer investors a new 10-year pound sterling-denominated World Bank bond, fulfilling pent-up demand for safe and liquid investments in the currency and tenor,” said Jorge Familiar, Vice President and Treasurer, World Bank. “This transaction underscores the World Bank's commitment to diversifying its funding sources and highlights our strategic role in mobilizing resources to support inclusive and sustainable development in IBRD member countries.”
Investor Distribution
By Geography |
| By Investor Type |
|
United Kingdom | 54% | Central Banks/Official Institutions | 60% |
Asia | 31% | Banks/Bank Treasuries/Corporates | 27% |
EMEA | 8% | Asset Managers/Insurance/Pension | 13% |
Americas | 7% |
|
|
“Many congratulations to the World Bank team for a successful rare 10-year sterling benchmark, the longest tenor in the sovereign, supranational and agency (SSA) space this year and the second public GBP benchmark of World Bank's 2024-2025 fiscal year. The quality of the orderbook, with a strong central bank component, is true evidence of the World Bank's credit appeal among GBP investors. This is further attested by the deal upsize from the original GBP 500 million to GBP 700 million. Citi is delighted to have been part of this great outcome,” said Ebba Wexler, Head of SSA DCM, Citi.
“Today's transaction highlights the support the World Bank continues to receive from investors who remain strong supporters of its goal of ending extreme poverty and promoting shared prosperity. Morgan Stanley is honored to have been a part of another World Bank issuance, it was a pleasure to be involved,” said Ben Adubi, Head of SSA, Morgan Stanley.
“The World Bank’s most difficult competition comes only from their own prior successes. Having printed the last 10-year sterling SSA transaction in February 2020 at UKT+36 bps, the World Bank have successfully executed a new 10-year transaction today at UKT+11.3 bps. This signifies the tightest gilt spread across the SSA sector since January 2006, whilst the 60% central bank allocation reflects the World Bank’s unique ability to capture demand in difficult maturity points. This issuance reflects our wider commitment and focus on supporting sustainable development, and we are proud to have been involved at NatWest,” said Damien Carde, Managing Director, Head of FBG DCM, NatWest Markets.
“We are delighted to have acted as joint bookrunner on the World Bank's 10-year GBP 700 million syndication. It has been four years since the World Bank executed a long-end GBP transaction, and it has delivered on yet another impressive result in the GBP capital markets. The deal is a testament to the strong support from the global investor community. This issuance supports the World Bank’s sustainable development mandate, and Santander is delighted to have been involved,” said Ali Nauman, Executive Director, SSA DCM, Banco Santander.
Transaction Summary
Issuer | World Bank (International Bank for Reconstruction and Development, IBRD) |
Issuer rating: | Aaa / AAA |
Amount: | GBP 700,000,000 |
Settlement date: | October 23, 2024 |
Maturity date: | October 23, 2034 |
Issue price: | 99.433% |
Issue yield: | 4.321% annual |
Denomination: | GBP 1,000 |
Coupon: | 4.25% p.a., payable annually |
Coupon payment dates: | Annually, every October 23 |
Listing | Luxembourg Stock Exchange |
ISIN | XS2923391606 |
Clearing systems | Euroclear/Clearstream |
Joint lead managers | Citi, Morgan Stanley, NatWest Markets, and Santander |
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
