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PRESS RELEASE September 10, 2020

World Bank Prices Successful EUR 1.5 Billion 15-Year Sustainable Development Bond

Washington, DC, September 10, 2020 – The World Bank (IBRD, Aaa/AAA) priced a 15-year euro-denominated benchmark bond maturing in September 2035, raising EUR 1.5 billion from institutional investors around the globe to support the financing of its sustainable development activities. This is IBRD’s largest euro-denominated bond offered at this maturity.

DZ Bank, J.P. Morgan, and Natixis are the lead managers for the transaction. The bond will be listed on the Luxemburg Stock Exchange.

The EUR 1.5 billion bond was oversubscribed, with an orderbook reaching EUR 2.1 billion. The bond priced with a final spread to mid-swaps of 10 basis points, 1 basis point tighter than initial guidance and equivalent to a yield of 0.115%. This equates to a spread vs. the reference Bund of +35.7 basis points.

"We are happy to see a strong reception from investors and value the ability offered by the euro market to extend duration with this new 15-year euro benchmark trade. We thank investors for their continued support in the World Bank’s sustainable development mission,” said Jingdong Hua, Vice President and Treasurer, World Bank.

Investor Distribution

By Geography

 

 By Investor Type

 

Europe

69%

Asset Managers/Insurance/Pension Funds

46%

Asia

31%

Banks/Bank Treasuries/Corporates

43%

 

 

Central Banks/Official Institutions

11%

Joint Lead Manager Quotes

“Perfect timing and swift execution by the World Bank team! A final orderbook in excess of EUR 2.1 billion with over 70 accounts is a clear testimony to the strong credit quality of the IBRD. In fact, EUR 1.5 billion is the largest ever euro benchmark transaction the IBRD has issued beyond 10 years. The DZ BANK team is delighted and honored to have been part of this fantastic success,” said Friedrich Luithlen, Head of Debt Capital Markets, DZ BANK.

“A stellar outcome with swift and flawless execution from the World Bank Treasury team, printing its largest long-dated euro transaction to date:  EUR 1.5 billion deal size for a new 15-year benchmark.  The final order book of over EUR 2.1 billion size comprised over 70 individual investors and boasted excellent quality  - a sign of World Bank’s growing presence in the euro capital markets, after having already accessed the 7, 8 and 10-year tenors for a total of EUR 8.5 billion size this calendar year. Well done yet again!” said Matthieu Batard, Head of SSA Syndicate, J.P. Morgan.

“This was the fourth transaction by the World Bank in the euro this year and exemplifying the strong name they have developed in this market issued a successful new transaction taking advantage of a brief but exceptional window. This deal amassed significant demand as the issuer targeted duration in an impressive final result on the longer end of the curve. As always, it is a privilege to work alongside this issuer and in particular as they continue to raise funding in their global sustainability efforts,” said Thomas Leocadio, Head of International SSA, Natixis.

Transaction Summary

Issuer:

World Bank (International Bank for Reconstruction and Development, IBRD)

Issuer rating:

Aaa/AAA

Amount:

EUR 1,500,000,000

Settlement date:

17 September 2020

Maturity date:

17 September 2035

Issue price:

99.777%

Issue yield:

0.115%

Denomination:

EUR 1,000

Coupon:

0.1%

Listing:

Luxembourg Stock Exchange

ISIN:

XS2231588547

Clearing systems:

Euroclear, Clearstream, Luxembourg

Joint lead managers:

DZ BANK, J.P. Morgan Securities, Natixis

With annual issuances 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 Market Association. 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 in sustainable development.

 

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

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 net proceeds from the sale of World Bank securities are used to finance sustainable development projects and programs in World Bank’s member countries without being committed or earmarked for lending to, or financing of, any particular projects or programs. Returns on World Bank securities are not linked to the performance of any particular project or program.

Contact

Heike Reichelt, Head of Investor Relations and Sustainable Finance, World Bank Treasury

debtsecurities@worldbank.org


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