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PRESS RELEASE October 27, 2020

World Bank Prices Long-dated EUR 2 Billion 30-Year Sustainable Development Bond

Washington, DC, October 27, 2020 – The World Bank (IBRD, Aaa/AAA) priced today a 30-year euro-denominated benchmark bond maturing in January 2051, raising EUR 2 billion from institutional investors around the globe to support the financing of its sustainable development activities.

Credit Agricole CIB, Goldman Sachs International, and Morgan Stanley are the lead managers for the transaction. The bond will be listed on the Luxemburg Stock Exchange.

The EUR 2 billion bond was oversubscribed, with an orderbook reaching over EUR 4 billion from more than 120 orders. The bond offers investors an issue price of 98.241% and a coupon of 0.125% per annum, equivalent to an annual yield of 0.185%. This equates to a spread versus the reference Bund of +36.7 basis points.

"This is another milestone - the bond extends our yield curve and offers investors a new liquid 30-year reference point. We are happy to see such strong investor demand for this long-dated benchmark. This benchmark, and all of our Sustainable Development Bonds, help us serve our member countries and further the World Bank’s sustainable development mission,” said Jingdong Hua, Vice President and Treasurer, World Bank.

Investor Distribution

The bonds were placed mostly with investors in Germany and France, with about one third placed with investors in other European countries and the rest of the world. By investor type, the distribution was 85% with asset managers, insurance companies and pension funds, 10% with banks, bank treasuries and corporates, and 5% with central banks and official institutions.

Joint Lead Manager Quotes

“The World Bank has really hit the sweet spot of the market at the perfect time with this transaction, combining fine pricing with an orderbook of exceptional quality. The momentum in the EUR primary market has been very strong over the last few days and with increasing appetite for duration and a good window of issuance ahead of the ECB meeting and further supply to come, the issuer has managed to align all the stars and offer a rare treat to investors, another testimony of the unique attraction of the World Bank name in the market,” said Eric Busnel, Deputy Global Head of Sovereign, Supranational and Agencies (SSA) Debt Capital Markets, Credit Agricole CIB.

“Another tremendous outcome for the World Bank, printing their largest ever 30-year benchmark at EUR 2 billion. The high-quality orderbook, which was heavily oversubscribed, was also the largest ever the issuer has collected for a transaction in the long end of the curve. Such a successful issuance less than a week after the pricing of their USD 6 billion 5-year USD benchmark is further indication that the World Bank's investor following is truly global and that it encompasses a very diverse range of accounts,” said Ben Adubi, Head of SSA Syndicate,  Morgan Stanley.

“A fantastic return to the long-end of the curve in EUR for the World Bank, achieving their largest benchmark in the 30-year tenor at EUR 2 billion. The World Bank took advantage of appetite for duration and no competing supply in the longer end of curve to launch their new on-the-run 30-year, which was immediately met with strong demand. The high quality and size of the orderbook ultimately allowed the World Bank to price at almost no new issue concession, further highlighting the World Bank’s incredible global investor following,” said Maud Le Moine, Head of SSA Origination, Goldman Sachs International.

Transaction Summary

Issuer:

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

Issuer rating:

Aaa/AAA

Amount:

EUR 2,000,000,000

Settlement date:

November 3, 2020

Maturity date:

January 3, 2051

Issue price:

98.241%

Issue yield:

0.185% annual

Coupon:

0.125% annual

Denomination:

Euro 1,000

Listing:

Luxembourg Stock Exchange

Clearing System:

Clearstream, Euroclear

Lead managers:

Credit Agricole CIB, Goldman Sachs International, Morgan Stanley

ISIN:

XS2251330184

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 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: https://treasury.worldbank.org/IBRDfunding.

 

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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