Washington, D.C., September 17, 2020 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced a 7-year CAD 750 million global benchmark bond that matures on September 28, 2027. The World Bank launched the Sustainable Development Bond while raising awareness for the World Bank’s projects and programs that provide support to its member countries efforts to achieve universal health coverage and to prevent, detect and respond to the health threat posed by COVID-19.
The 7-year benchmark pays a semi-annual coupon of 0.875% and has an issue price of 99.824% and a final spread of 50.60 bps over the 1% CAN June 2027 reference bond, offering investors a yield of 0.901% (semi-annual). Joint lead managers for this transaction are BMO Capital Markets, CIBC Capital Markets, Scotiabank, and TD Securities.
“We wish to thank investors for their participation in our Sustainable Development Bond,” said Jingdong Hua, Vice President and Treasurer, World Bank.“We appreciate the interest both from Canadian investors seeking diversification with a global issuer, as well as from international investors that value IBRD as a way to increase their participation in a variety of markets, including Canadian dollars.”
Investor Distribution
By Geography | By Investor Type | |||
Americas | 78% | Banks/Bank Treasuries/Corporates | 59% | |
Europe/Middle East/ Africa | 11% | Asset Managers/Insurance/Pension Funds | 38% | |
Asia | 11% | Central Banks/Official Institutions |
| 3% |
Joint Lead Manager Quotes
“The World Bank’s commitment to regularly returning to the Canadian dollar bond market has once again captured the attention of global investors looking for sustainable investment opportunities. This transaction represents the largest-ever 7-year CAD Sovereign, Supranational and Agency (SSA) new issue from a non-domestic borrower. The 7-year tenor nicely suits the World Bank’s duration targets, while enhancing liquidity from the most prolific international SSA borrower in Canadian dollars,” said Sean Hayes, Managing Director, Head of US Syndicate & Credit Sales, BMO Capital Markets.
“Today marked the World Bank’s third public benchmark deal in the CAD market for 2020, clearly underlining their unparalleled investor receptivity globally. This reach is further underpinned by the emphasis on Environmental, Social and Governance (ESG) criteria, which in this instance is to raise awareness for the highly compelling Sustainable Development Goal #3 (Health and Well-Being), especially in the current pandemic. Congratulations to the World Bank team on continued success in the Canadian dollar market,” said Ali Gardezi, Director of European Debt Capital Markets, CIBC Capital Markets.
“Scotiabank is proud to support the World Bank in its third CAD Sustainable Development Bond offering of 2020, raising awareness for Sustainable Development Goal #3 (Good Health and Well-Being) while cross-cutting important social objectives such as poverty, gender equality and reduced inequalities. This transaction is the first 7-year benchmark by the World Bank in the Canadian dollar market and also represents the largest CAD 7-year benchmark by an SSA issuer. As testament to the World Bank’s premier standing in the Canadian dollar market, the issue received strong sponsorship from the ESG investment community in Canada,” said Cesare Roselli, Global Head of SSA Origination, Scotiabank.
"Congratulations to the World Bank team on their new 7-year Canadian dollar benchmark transaction. It reflects the exceptional track record of the World Bank in the CAD market and adds another liquid point to their benchmark curve. The 7-year maturity responded perfectly to increased investor demand for longer maturities against the global backdrop of lower interest rates. This transaction highlighted Sustainable Development Goal #3 Good Health and Well-Being which draws investor attention to the continued and immediate needs from developing countries to manage the additional challenges posed by COVID-19," said Laura O'Connor, Director, Fixed Income Origination & Syndication, TD Securities.
Transaction Summary
Issuer: | World Bank (International Bank for Reconstruction and Development, IBRD) |
Issuer rating: | Aaa/AAA (Moody’s/S&P) |
Amount: | CAD 750 million |
Settlement date: | September 28, 2020 |
Maturity date: | September 28, 2027 |
Issue price: | 99.824% |
Issue yield: | 0.901% semi-annually |
Coupon: | 0.875% per annum |
Denomination: | CAD 1,000 |
Listing: | Luxembourg Stock Exchange |
ISIN: | CA459058JK08 |
Clearing system: | CDS, Clearstream, Euroclear |
Joint lead managers: | BMO Capital Markets, CIBC Capital Markets, Scotiabank, TD Securities |
For more information on the World Bank Group and COVID-19
www.worldbank.org/en/who-we-are/news/coronavirus-coid19
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. 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.
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
