PRESS RELEASE January 16, 2020

IDA Debuts in Sterling with Successful GBP 1.5 Billion 5-year Benchmark Bond

WASHINGTON, DC, January 16, 2020 – The International Development Association (IDA, Aaa/AAA) made its debut in the sterling market with a 5-year benchmark bond that raised GBP 1.5 billion. The bond matures on December 12, 2024.

The bond offers an annual coupon of 0.75% and an annual yield of 0.787%. It was priced at +37 basis points over the 2.75% UK Gilt due September 2024.

Barclays, Citibank, NatWest Markets and TD Securities are the joint lead managers for the transaction.

This transaction complements the inaugural IDA bonds issued in April 2018 (USD 1.5 billion benchmark), October 2019 (EUR 1.25 billion benchmark).

IDA bond proceeds will support the financing of projects and programs in eligible IDA countries as they advance the Sustainable Development Goals, offering investors an efficient way to contribute to global development.

Anshula Kant, Managing Director and World Bank Group Chief Financial Officer, said: “IDA is one of the most effective platforms to reduce poverty and accelerate sustainable and inclusive growth in the world’s poorest countries. We are pleased to see a strong reception of IDA’s inaugural GBP benchmark bond. Through the capital markets, IDA puts additional resources to work alongside contributions from donor countries to address some of the world’s biggest challenges and help millions of people lift themselves out of poverty.”

The GBP benchmark issue will be listed on the London Stock Exchange (“LSE”) and Luxembourg Stock Exchange. This will be the first LSE-listed deal for IDA. The listing coincides with the arrival of African government and business leaders in London ahead of Monday’s UK-Africa Investment Summit.

Baroness Sugg, Development Minister, UK Government said: “London is already the biggest international financial market for African businesses, but there is huge untapped investment potential in Africa for UK investors. The Government and partners like the World Bank are helping to unlock this potential. IDA’s new GBP benchmark bond shows what the impact can be, raising much-needed capital that will have a huge, positive impact on communities across Africa.”

Investor Distribution

By Geography

By Investor Type

United Kingdom

66%

Banks/Bank Treasuries/Corporates

52%

Europe

18%

Central Banks/Official Institutions

28%

Americas (excl. U.S.)

10%

Asset Managers/Insurance/Pension Funds

20%

Asia

4%

 

 

Middle East & Africa

2%

 

 

Jes Staley, Barclays Group Chief Executive Officer, said: “IDA’s mission to end extreme poverty and build shared prosperity is of vital global importance, and its incredible achievements over the past 60 years are clear evidence that it has been one of the most effective tools available to governments to make a positive impact to those most in need. IDA’s leveraging of the capital markets and private capital has a significant multiplier effect on the its ability to make progress towards the UN Sustainable Development Goals. Barclays is truly honored to have been given the opportunity to support the launch of IDA’s bond program into another key currency market.”

Phil Drury, EMEA Head of Banking, Capital Markets and Advisory at Citi, said: “Today’s GBP 1.5bn inaugural benchmark from IDA marks an exciting step in building IDA’s capital markets franchise.  It’s fantastic to see the strong investor endorsement. I am proud to see Citi appointed bookrunner on such an important transaction in support of IDA’s mission to finance the development of some of the world’s poorest countries.”

Howard Davies, RBS Chairman, said: “NatWest Markets and RBS wholeheartedly embrace the International Development Association’s mission and its positive interventions in supporting development activities globally. As the UK is one of IDA’s largest shareholders, today’s inaugural GBP transaction is of great significance. This issuance reflects our wider commitment and focus on supporting sustainable development, and we are proud to help IDA expand its global investor base and advance its mission to eradicate extreme poverty in a sustainable manner.”

Bharat Masrani, TD Bank Group, Group President and Chief Executive Officer, said: “TD Securities is privileged to lead the debut bond issue for the International Development Association in the sterling market. IDA’s mission to reduce poverty in the world’s poorest countries requires diversified access to global capital markets to support financing for programs that will succeed in boosting economic growth, reducing inequalities and improving living conditions for the most vulnerable populations. We congratulate the World Bank team on a successful beginning to the IDA sterling benchmark funding program.”

Transaction Summary

Issuer:

International Development Association (IDA)

Issuer rating:

Aaa/AAA

Amount:

GBP 1.5 billion

Format:

Reg S

Settlement date:

January 24, 2020

Maturity date:

December 12, 2024

Issue price:

99.826%

Issue yield:

0.787% annual

Coupon:

0.750% p.a.

Denomination:

GBP 1,000

Listing:

London Stock Exchange, Luxembourg Stock Exchange

Lead managers:

Barclays, Citi, NatWest Markets, TD Securities

ISIN:

XS2107314663

This press release does not constitute or form part of and should not be construed as an offer for sale or issue or the solicitation of an offer to buy or acquire the securities described in any jurisdiction or an inducement to enter into investment activity. No part of this press release, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. The offering and sale of the securities described in this document are subject to restrictions under the laws of several jurisdictions. Securities may not be offered or sold except in compliance with all such laws.

About IDA

The International Development Association (IDA), rated Aaa/P-1 and AAA/A-1+ (Moody’s/S&P), is one of the largest sources of funding for fighting extreme poverty in the world’s poorest countries. Since its establishment in 1960, IDA has provided more than $391 billion for investments in 113 countries. As an institution of the World Bank Group, IDA combines global expertise with an exclusive focus on reducing poverty and boosting prosperity. Proceeds of IDA bonds support sustainable development projects and programs in IDA eligible countries. Projects and programs supported by IDA are designed to achieve a positive social impact and undergo a rigorous review and internal approval process aimed at safeguarding equitable and sustainable economic growth. Information on IDA bonds is available at http://www.worldbank.org/en/about/unit/treasury/ida.

Contact

Heike Reichelt
Head of Investor Relations and New Products
The World Bank
+1 202 477 2880
debtsecurities@worldbank.org


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