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PRESS RELEASE October 21, 2020

World Bank Prices USD 6 Billion 5-Year Sustainable Development Bond

Washington, D.C., October 21, 2020 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) priced today a global benchmark USD 6 billion Sustainable Development Bond maturing on October 28, 2025.          

Very strong demand from global investors for the USD benchmark led to an orderbook of over USD 9 billion, with nearly 180 investor orders, anchored by central banks and official institutions. Other investors included bank treasuries, asset managers, as well as pension and insurance funds.

The 5-year benchmark pays a semi-annual coupon of 0.500% per annum and has an issue price of 99.887% and a final spread of 17.7 basis points over the 0.25% US Treasury September 2025 reference bond, offering investors a yield of 0.523%. Joint lead managers for this transaction are Barclays, Deutsche Bank, Morgan Stanley and RBC Capital Markets.

“This is a terrific result; the level of investor demand with our second-largest ever orderbook, reflects the strong support for the World Bank and its sustainable development mandate. This benchmark, and all of our Sustainable Development Bonds, help us serve our member countries, including efforts to respond to the health, social, and economic impacts of COVID-19 and work toward a sustainable and inclusive recovery,” said Jingdong Hua, Vice President and Treasurer, World Bank.

Investor Distribution

By Investor Type

By Region

Central Banks/Official Institutions

44%

EMEA

35%

Asset Managers/Insurance/Pension Funds

40%

Americas

33%

Banks/Bank Treasuries/Corporates

16%

Asia

32%

“In this challenging year it has been an honor to partner with the World Bank as they play an increasingly crucial role in helping economies respond to the coronavirus crisis. With a high quality orderbook of over USD 9 billion, investors have once again demonstrated their strong demand for the World Bank which delivered an incredibly successful USD 6 billion Sustainable Development Bond. As always, it is a privilege for Barclays to have worked on this spectacular transaction with the World Bank,” said Lee Cumbes, Head of Public Sector EMEA, Barclays.

“The World Bank has successfully launched its seventh USD benchmark in 2020, reaching an impressive size of USD 6 billion. Once again, the World Bank benefited from strong support from its investors which underscores its importance to the USD market. The quality of the orderbook was superb and illustrated the enviable position that the World Bank commands with leading central banks and real money investors across the globe. We are honored to have the occasion to work alongside the World Bank team yet again as they lead by example in the Sovereign, Supranational and Agency (SSA) market,” said Achim Linsenmaier, Managing Director, Global Head of DCM Public Sector Origination, Deutsche Bank.

"Another strong outcome for the World Bank, capitalizing on a calm period in the market, issuing the second largest SSA USD benchmark in 2020, only behind their own 5-year benchmark printed earlier in April this year. The large deal size is supported by a high quality orderbook amounting to over USD 9 billion, with almost 180 accounts participating, yet another testament to the appeal of the World Bank’s credit. Morgan Stanley is very proud to have been involved,” said Ben Adubi, Head of SSA Syndicate at Morgan Stanley.

“The World Bank’s very successful return to the USD market demonstrates a market leading access to liquidity that has once again reinforced its status as the benchmark USD issuer in the SSA market.  The combination of credit quality, liquidity, and an opportunity to support sustainable development remain the World Bank’s most effective calling cards,” said Jigme Shingsar, Managing Director, RBC Capital Markets.

Transaction Summary:

Issuer:

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

Issuer rating:

Aaa/AAA

Amount:

USD 6,000,000,000

Settlement date:

October 28, 2020

Maturity date:

October 28, 2025

Issue price:

99.887%

Issue yield:

0.523% semi-annual

Coupon:

0.500% semi-annual

Denomination:

USD 1,000

Listing:

Luxembourg Stock Exchange

Clearing systems:

Fedwire, Euroclear, Clearstream

ISIN:

US459058JL88

Lead managers:

Barclays, Deutsche Bank, Morgan Stanley and RBC Capital Markets

Senior co-lead managers:

Wells Fargo, NBF, BMO and CastleOak


For more information on the World Bank Group and COVID-19

www.worldbank.org/en/who-we-are/news/coronavirus-covid19

 

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, The World Bank
+1 202 477 2880
debtsecurities@worldbank.org


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