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PRESS RELEASE January 7, 2021

World Bank Prices Global Dual Tranche SOFR Index-Linked Offering and Raises USD 3.5 Billion

WASHINGTON, D.C., January 7, 2021 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) priced a new USD 2.35 billion 2-year benchmark bond and raised an additional USD 1.15 billion for its August 2027 bond – both linked to the Secured Overnight Financing Rate (SOFR) index.

These transactions continue to meet investor demand from US financial institutions and global bank treasuries seeking high-quality, SOFR-linked floating rate product. The proceeds from the USD 3.5 billion dual tranche offering will be used to finance the World Bank’s sustainable development activities.

The high-quality orderbook closed with USD 3.7 billion of interest with broad global distribution across the two tranches and 70 orders. Joint lead managers for the transactions are BMO Capital Markets, RBC Capital Markets, and Wells Fargo Securities.

Jingdong Hua, Vice President and Treasurer, World Bank said, “This is an amazing result. With these transactions, we are extremely pleased to be able to continue contributing to the development of the SOFR market at both ends of the curve. By offering investors the opportunity to participate in liquid World Bank SOFR transactions in both 2- and 7-year maturities on the same day, we were able to attract a growing investor base of domestic and international investors to the SOFR market. We want to thank investors for the support and strong showing in the World Bank’s first SOFR transactions of 2021”.

Joint Lead Manager Quotes

Sean Hayes, Managing Director & Head of US Syndicate & Credit Sales, BMO Capital Markets said, “World Bank kicks off 2021 USD funding in ground-breaking fashion. As the Sovereign, Supranational and Agency (SSA) borrower community focused on fixed rate offerings, the World Bank printed a first-of-its-kind SOFR floater deal. Raising USD 3.5 billion across a dual-tranche SOFR outing marks the largest ever SSA SOFR deal, including the largest single-tranche in the 2-year maturity. Increasing liquidity by re-opening the world’s longest outstanding SOFR bond by means of the 7-year tap illustrates continued leadership and market development by the World Bank as the bond market continues to transition away from LIBOR. From the innovation of World Bank to the remarkable investor support to bring this transaction to fruition, BMO was thrilled to be a partner”.

Jigme Shingsar, Managing Director, RBC Capital Markets said, “World Bank’s record setting return to the SOFR market sets a new standard for liquidity and breadth of distribution while continuing the World Bank’s pioneering work developing the long end of the SOFR curve. This transaction is another important milestone for SOFR and comes at a time when the market needs more case studies demonstrating successful navigation of benchmark reform and the transition to risk-free rates”.

Carlos Perezgrovas, Head SSA Origination, Wells Fargo Securities LLC said, “With this dual tranche USD 3.5 billion issuance, the World Bank continues to lead the way in the growing SOFR funding market. This trade exhibited strong demand on both parts of the curve from new investors in the Americas and Europe, Middle East and Africa regions, highlighting the constructive tone of the SOFR market. It was a pleasure working with the World Bank team on this transaction”.

Investor Distribution

By Geography


Aug-2027 Tap




Europe, Middle East, Africa









By Investor Type



Asset Managers, Insurance, Pension Funds



Banks, Bank Treasuries, Corporates



Central Banks, Official Institutions



Transaction Summary



Aug-2027 Tap


International Bank for Reconstruction and Development

Issuer rating:

Aaa / AAA (Moody’s/S&P)


USD 2,350,000,000

USD 1,150,000,000

Settlement date:

January 14, 2021

January 14, 2021

Maturity date:

January 13, 2023

August 19, 2027

Re-offer spread:

Compounded SOFR + 13bps

Compounded SOFR + 34 bps

Compounded SOFR:

Calculated on the basis of the evolution of the value of the SOFR Index from the SOFR IndexStart value date to, but excluding, the SOFR IndexEnd value date with regard to the relevant interest period

Calculated on the basis of the evolution of the value of the SOFR Index from the SOFR IndexStart value date to, but excluding, the SOFR IndexEnd value date with regard to the relevant interest period

Coupon payment dates:

Paid quarterly January 13, April 13, July 13, and October 13 each year, from and including April 13, 2021, to and including the maturity date

Paid quarterly on February 19, May 19, August 19, and November 19, from and including November 19, 2020, to and including the maturity date

Reoffer Price:






Clearing systems:

Fedwire, Euroclear, Clearstream


Luxembourg Stock Exchange

Joint lead managers:

BMO Capital Markets, RBC Capital Markets, Wells Fargo Securities, LLC

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

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.


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.


Heike Reichelt, The World Bank

+1 202 477 2880