Washington, D.C., January 5, 2021 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced its inaugural benchmark transaction of 2021, a 5-year CAD 1.5 billion global bond that matures on January 14, 2026. The World Bank launched the Sustainable Development Bond while raising awareness for the World Bank’s strategy, projects and programs that focus on gender equality and health and highlight how COVID-19 disproportionately impacts women.
The 5-year benchmark pays a semi-annual coupon of 0.625% p.a. and has an issue price of 99.750% and a final spread of +28.25 bps over the 0.50% CAN September 2025 reference bond, offering investors a yield of 0.676% (semi-annual). Joint lead managers for this transaction are BMO Capital Markets, National Bank Financial Markets, Scotiabank, and TD Securities.
Jingdong Hua, Vice President and Treasurer, World Bank, said:“We are pleased to see a robust start to 2021 with continued support for the World Bank’s sustainable development mandate from Canadian dollar investors. Investor interest in elevating topics like gender equality and strong and equitable health systems helps to raise awareness for these challenges and highlight the importance of channeling finance to where it is needed most. Recognition of the purpose of investment and impact are key to creating a sustainable and resilient future for all”.
Investor Distribution
By Geography | By Investor Type | ||
Americas | 61% | Banks/Bank Treasuries/Corporates | 38% |
Europe/Middle East/Africa | 25% | Asset Managers/Insurance/Pension Funds | 33% |
Asia | 14% | Central Banks/Official Institutions | 29% |
The World Bank’s goals of ending extreme poverty by 2030 and promoting shared prosperity in a sustainable manner are aligned with the Sustainable Development Goals (SDGs). Increasingly, investors and other market participants are using the SDGs as a framework for investment and a way to communicate support for specific development priorities. With this Sustainable Development Bond, the World Bank is raising awareness for SDG 3 (Good Health and Wellbeing) and SDG 5 (Gender Equality). Investing in World Bank bonds offers investors an opportunity to align financial and social objectives.
Joint Lead Manager Quotes
Sean Hayes, Managing Director & Head of US Syndicate & Credit Sales, BMO Capital Markets, said:"The World Bank kicks off a fourth consecutive year with a triumphant reopening of Canadian dollar primary markets. The World Bank’s regular presence in CAD speaks to its leadership and commitment to maintaining curves across non-USD currencies for its global investors focused on sustainability. This issuance highlights current global challenges encompassing health and gender equality. The CAD 1.5 billion 5-year benchmark matches the World Bank’s largest Canadian primary new issue and demonstrates strong domestic and international demand for sustainable bonds”.
Scott Graham, Managing Director, Head of US Government & SSA Finance said:“The World Bank once again demonstrates its exceptional leadership and its resounding commitment to both sustainability and the Canadian bond market by consecutively reopening the Maple market with a 5-year offering for the 2nd year in a row. The overwhelming global support for the World Bank continues to be magnified by its underlying sustainability principles that reinforce its overall purpose of eliminating global poverty, with this latest transaction highlighting SDG 3 (Health and Well-Being) and SDG 5 (Gender Equality), while providing continued assistance to developing countries affected by COVID-19. Congratulations to the World Bank team on continued success in the Canadian market”.
Cesare Roselli, Head of SSA Origination, Scotiabank said:“Scotiabank is proud to support the World Bank in its debut capital markets offering of 2021, focusing on health and well-being and gender equality (SDG 3 and 5). With this transaction, the World Bank reinforced its commitment to the Canadian dollar market as a strategic currency of its funding program. The issue received strong sponsorship from both the domestic and international ESG investment community, thus cementing the recognition of the World Bank in an increasingly important market for sustainable issuance”.
Laura O'Connor, Managing Director, Fixed Income Origination & Syndication, TD Securities said: “Congratulations to the World Bank for an impressive start of 2021 with a CAD 1.5 billion deal. The demand from the full spectrum of domestic and international investors reflects the exceptional track record of the World Bank in the CAD market. This global Sustainable Development Bond highlights SDG 3, Good Health, and SDG 5, Gender Equality, which draws investor attention to the continued challenges in the context of the COVID-19 pandemic”.
Transaction Summary
Issuer: | World Bank (International Bank for Reconstruction and Development, IBRD) |
Issuer rating: | Aaa/AAA (Moody’s/S&P) |
Amount: | CAD 1,500,000,000 |
Settlement date: | January 14, 2021 |
Maturity date: | January 14, 2026 |
Issue price: | 99.750% |
Issue yield: | 0.676% semi-annually |
Coupon: | 0.625% per annum |
Denomination: | CAD 1,000 |
Listing: | Luxembourg Stock Exchange |
ISIN: | CA459058JP94 |
Clearing system: | CDS, Clearstream, Euroclear |
Joint lead managers: | BMO Capital Markets, National Bank Financial Markets, Scotiabank, TD Securities |
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 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. The World Bank’s Sustainable Development Bond Impact Report describes how the World Bank engages with investors on the SDGs and raises awareness for specific development challenges.
Disclaimers
Net proceeds of the bonds described herein are not committed or earmarked for lending to, or financing of, any particular projects or programs, and returns on the bonds described herein are not linked to the performance of any particular project or program.
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.
Contact
Heike Reichelt
Head of Investor Relations and Sustainable Finance
World Bank Treasury
debtsecurities@worldbank.org
