WASHINGTON, D.C., January 7, 2025 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced a 7-year benchmark bond that matures in January 2032. The Sustainable Development Bond raised USD 6 billion from investors seeking a high-quality liquid investment that supports the World Bank’s work to end extreme poverty and boost prosperity on a livable planet.
With more than 180 investor orders, the transaction attracted the highest demand for any World Bank bond, primarily driven by bank treasuries, central banks, official institutions, and asset managers. The appeal was largely due to the strong credit quality, high level of liquidity, and use of proceeds for sustainable development.
The lead managers are BNP Paribas, J.P. Morgan Securities, The Bank of Nova Scotia, and Wells Fargo Securities, LLC. The bond will be listed on the Luxembourg Stock Exchange, pays a semi-annual coupon of 4.625%, offers a spread of 15.5 basis points versus the reference US Treasury, with a semi-annual yield of 4.710%.
"We are excited to start the new year with record-breaking investor demand of USD 12.6 billion for this 7-year bond, our largest ever benchmark in this maturity," said Jorge Familiar, Vice President and Treasurer, World Bank. “This transaction shows once again how the World Bank mobilizes finance from the international capital markets for its projects and programs around the world that work to end poverty on a livable planet.”
Investor Breakdown by Type
Banks/Bank Treasuries/Corporates | 58% |
Asset Managers/Insurance/Pension Funds | 29% |
Central Banks/Official Institutions | 13% |
Investor Breakdown by Geography
Europe / Middle East/ Africa (EMEA) | 63% |
Americas | 30% |
Asia | 7% |
Lead Manager Quotes
“BNP Paribas congratulates the World Bank on a strong start to 2025 with the largest-ever 7-year USD Sovereign, Supranational and Agency (SSA) trade to date, a testament to the issuer's strong investor following. We were delighted to be part of this transaction,” said Salma Guerich, DCM SSA BNP Paribas.
“Congratulations to the World Bank on its successful return to the US dollar benchmark market with a USD 6 billion 7-year Sustainable Development Bond. Order books of over USD 12.6 billion also represents World Bank's largest-ever for a single tranche transaction, highlights the World Bank's persistent attractiveness among global investors. JP Morgan is proud to have supported the World Bank in this transaction,” said Sarah Lovedee, Head of Supranational DCM, J.P. Morgan.
“Scotiabank congratulates the World Bank on its first US dollar-denominated transaction of 2025: a highly successful Sustainable Development Bond and the largest 7-year SSA transaction issued in the US dollar market. The size and quality of the orderbook are a testament to investor demand for the World Bank name, strategic issuance timing, and thoughtful pricing decisions during the book-build process. Scotiabank is pleased to be involved on such an important issuance,” said Cesare Roselli, Global Head of SSA Origination at Scotiabank.
“Congratulations to the World Bank team on this remarkable USD 6 billion 7-year benchmark transaction – the largest 7-year SSA benchmark which was supported by the World Bank’s largest ever orderbook, exceeding $12.6 billion. Executing such a successful transaction during an exceptionally busy first week of the year is a testament to the World Bank’s unparalleled reputation and ability to consistently attract a deep and diverse global investor base. Wells Fargo is proud to have partnered on this landmark achievement,” said Carlos Perezgrovas, Head SSA Origination, Wells Fargo Securities.
Transaction Summary
| 7-Year Bond |
Issuer: | World Bank (International Bank for Reconstruction and Development, IBRD) |
Issuer rating: | Aaa /AAA |
Amount: | USD 6 billion |
Settlement date: | January 15, 2025 |
Maturity date: | January 15, 2032 |
Issue price: | 99.498% |
Issue yield: | 4.710% semi-annual |
Denomination: | USD 1,000 |
Coupon: | 4.625%, payable semi-annually |
ISIN: | US459058LQ48 |
Listing: | Luxembourg Stock Exchange |
Clearing system: | Fedwire, Clearstream, Euroclear |
Lead managers: | BNP Paribas, J.P. Morgan Securities, The Bank of Nova Scotia, Wells Fargo Securities, LLC |
Senior co-lead managers: | CastleOak Securities, L.P., CIBC World Markets Corp, National Bank of Canada Financial Inc. |
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