Sustainable Development Bond Raises Awareness for Health and COVID-19 Response
Washington, D.C., April 15, 2020 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced a USD8 billion 5-year global benchmark bond that matures on April 22, 2025. This is the largest ever US dollar denominated bond issued by a supranational.
Prior to the transaction, the World Bank held a global call to update select investors on the World Bank’s plans to support member countries in their efforts to address the human and economic impacts of COVID-19, with a focus on phase one of the World Bank’s response. The call was an opportunity to share details on how focusing on health projects and programs is crucial for member countries’ immediate response to COVID-19.
Extremely strong demand from global investors for the USD benchmark led to the World Bank’s largest orderbook of USD12.5 billion, with almost 190 investor orders, anchored by central banks and bank treasuries. Other investors included other official institutions, asset managers, as well as pension and insurance funds.
The 5-year benchmark pays a semi-annual coupon of 0.625% and has an issue price of 99.613% and a final spread of 36.5bps over the 0.50% US Treasury due March 2025 reference bond, offering investors a yield of 0.704%. Joint lead managers for this transaction are Barclays, BMO Capital Markets, Citi and TD Securities.
“In these unprecedented times, investor interest in the World Bank’s sustainable development mission is especially important,” said Anshula Kant, Managing Director and World Bank Group Chief Financial Officer. “We appreciate our investors’ support and confidence in the strong credit and role of the World Bank. This landmark transaction is part of the issuance program that supports the financing by the World Bank of sustainable development projects and programs in our member countries, including our member countries’ efforts to prevent, detect, and respond to the rapid spread of COVID-19. As countries around the world work to contain the impact of this virus, we are deploying a swift response in support of developing countries to strengthen health systems, sustain economies, and help save lives.”
By Investor Type
Central Banks/Official Institutions
Asset Managers/Insurance/Pension Funds
Middle East & Africa
With annual issuances on average between US$55-US$65 billion, World Bank bonds support the financing of programs that further the Sustainable Development Goals. World Bank bonds are aligned with the sustainability bond guidelines published by the International Capital Markets Association (ICMA). The World Bank is also a member of the Executive Committee of the Green Bond and Social 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 for sustainable development.
Joint Lead Manager Quotes
“The World Bank’s ongoing mission to end extreme poverty and build shared prosperity is of vital global importance. But it’s the institution’s work on its health strategy, which prioritizes infection prevention and control, and the spread of pandemics, which is incredibly valuable during this time. The organization’s approach to help developing countries to cope with the human and economic impacts of the COVID-19 pandemic will be crucial during the coming weeks and months, starting with the strengthening of health systems, and provision of immediate social support. The impact of the rapid deployment of capital to these initiatives cannot be overstated. Barclays is honored to have been given the opportunity to support the World Bank once again in the capital markets, with this US Dollar Sustainable Development Bond transaction,” said Jes Staley, Group Chief Executive, Barclays
“During this unprecedented time, it is an honor to work with the World Bank again on another influential transaction. Strengthening existing health systems in developing countries is part of the World Bank’s fast track approach and is aligned with our priorities and purpose at BMO for community involvement during the COVID-19 pandemic. We are proud to be a part of this global solution,” said Dan Barclay, CEO and Group Head, BMO Capital Markets.
“The World Bank will play a crucial role in helping emerging market economies respond to the coronavirus crisis. Investors have expressed their huge support for the World Bank in this role by subscribing in tremendous size for this USD8 billion Sustainable Development Bond. Citi is proud to be alongside the World Bank and our partner book-runners for this important transaction,” said Manolo Falco, Co- Head of BCMA, Citigroup
“At this critical juncture for the global economy, facilitating the flow of capital to the most vulnerable regions in the world is of paramount importance. The World Bank is at the nexus of those flows and through this USD benchmark bond offering, global investors have an opportunity to support their efforts to finance sustainable development including their support for healthcare projects in the developing world. TD Securities is honored to be involved in this historic bond transaction and we congratulate the World Bank team on an outstanding benchmark transaction,” said Bob Dorrance, Chairman, CEO & President, TD Securities
World Bank (International Bank for Reconstruction and Development, IBRD)
April 22, 2020
April 22, 2025
Luxembourg Stock Exchange
Barclays, BMO Capital Markets, Citi, TD Securities
Senior co-lead managers:
Deutsche Bank, CastleOak Securities, Wells Fargo
For more information on the World Bank Group and COVID-19
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 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 operates as a global development cooperative owned by 189 nations. It provides its members with financing, expertise and coordination services so they can achieve equitable and sustainable economic growth in their national economies and find effective solutions to pressing regional and global economic and environmental problems. The World Bank Group has two main goals: to end extreme poverty and promote shared prosperity. The World Bank (IBRD) seeks to achieve them primarily by providing loans, risk management products, and expertise on development-related disciplines to its borrowing member government clients in middle-income countries and other creditworthy countries, and by coordinating responses to regional and global challenges. The World Bank has been issuing bonds in the international capital markets for over 70 years to fund its sustainable development activities and achieve a positive impact. Information on bonds for investors is available on the World Bank Treasury website: www.worldbank.org/debtsecurities.
Head of Investor Relations and New Products
World Bank Treasury