Washington, D.C., November 16, 2020 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) priced a long 5-year British pound sterling benchmark bond due July 2026, raising GBP 1 billion from investors globally to support the financing of its sustainable development activities.
The bond offers an annual coupon of 0.250% and an annual yield of 0.305%. It was priced at +26 basis points over the 1.5% UK Gilt due July 2026. Bank of America, HSBC, JP Morgan, and RBC Capital Markets are joint lead managers for the transaction. The bond will be listed on the Luxembourg Stock Exchange.
Jingdong Hua, Vice President and Treasurer, World Bank said, “We are happy to see continued robust participation from sterling investors for high-quality credit that is contributing to a better and more sustainable future. We thank investors for their support of the World Bank’s development mission to improve the lives of people in our member countries.”
The high-quality order book attracted nearly 40 investors. Most of the transaction was placed with investors in the United Kingdom with banks and official institutions representing the bulk of participation.
Investor Distribution
By Geography | By Investor Type | ||
United Kingdom | 78% | Banks/Bank Treasuries/Corporates | 60% |
Europe (Ex-UK) & Middle East | 18% | Asset Managers/Insurance /Pension Funds | 32% |
Asia-Pacific | 4% | Central Banks/Official Institutions | 8% |
Joint Lead Manager Quotes
Adrien de Naurois, SSA Syndicate, Bank of America said,“Congratulations to the World Bank team on another strong return to the sterling market. The issuer’s unwavering support for sustainable development has never been more critical and today’s transaction once again demonstrated that this is a message which clearly resonates with the investor base.”
Matthieu Batard, Head of SSA Syndicate, J.P. Morgan said,“World Bank remains at the forefront of the GBP SSA market. With their fifth sterling transaction of 2020, World Bank have now been active in all tenors from 3- to 10-years – all above GBP 1 billion size. Launching a sizeable trade in November in one of the last windows of the year highlights World Bank’s exceptional standing with a diverse investor base.”
Asif Sherani, EMEA Head of Syndicate, HSBC said,“IBRD has achieved yet another highly successful outcome in the sterling market with its fifth benchmark in the calendar year. The deal generated high-quality demand with limited price sensitivity, allowing a GBP 1 billion print. This result, alongside the speed of execution, underlines IBRD's strong recognition in the GBP market.”
Stuart McGregor, Managing Director, SSA Syndicate, RBC Capital Markets said,“The World Bank keeps raising the bar for liquidity in the GBP market with what is now with their fifth consecutive over 1 billion GBP benchmark new line of 2020. World Bank has clearly demonstrated that the combination of stellar credit quality and an opportunity to support sustainable goals is a winning combination with investors.”
Transaction Summary
Issuer: | World Bank (International Bank for Reconstruction and Development, IBRD) |
Issuer rating: | Aaa/AAA |
Amount: | GBP 1,000,000,000 |
Settlement date: | November 23, 2020 |
Maturity date: | July 22, 2026 |
Issue price: | 99.691% |
Issue yield: | 0.305% annual |
Denomination: | GBP 1,000 |
Coupon: | 0.250% per annum |
Listing: | Luxembourg Stock Exchange |
ISIN: | XS2262090009 |
Clearing systems: | Euroclear/Clearstream Luxembourg |
Joint lead managers: | Bank of America Securities, HSBC, J.P. Morgan, and RBC Capital Markets |
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
