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PRESS RELEASE January 13, 2021

World Bank’s EUR 2 Billion 40-Year Sustainable Development Bond Responds to Long-End Euro Investor Demand

WASHINGTON, D.C., January 13, 2021 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) priced its first Euro-denominated benchmark of 2021, a EUR 2 billion 40-year Sustainable Development Bond maturing in January 2061. It was the issuer’s first Euro denominated benchmark bond in the tenor. The transaction was timed to respond to investors seeking high credit investment options, long duration, as well as diversification to non-European issuers. The deal attracted over 110 orders totaling more than Euro 3.6 billion. There was particular interest from pension funds, insurance companies, as well as asset management firms looking for investment opportunities that help manage the duration of long-term liabilities.

BofA Securities, Goldman Sachs International, HSBC and Natixis are the lead managers for the transaction. The bond will be listed on the Luxembourg Stock Exchange.

The bond priced with a final spread to mid-swaps of +23 basis points and an equivalent annual yield of 0.203%. This equates to a spread vs. the reference Bund of +31.5 basis points.    

“We are pleased to be able to respond to investor demand for long-dated Euro denominated bonds from diverse and high-credit quality issuers with this transaction,” said Anshula Kant, Managing Director and Chief Financial Officer, World Bank Group.“Raising funds at efficient costs, as we have done again with this transaction, maximizes the World Bank’s support for sustainable development projects and programs in our members countries, so that they can overcome immediate challenges and reach their long-term development objectives.”

Lead Manager Quotes

“Congratulations to the World Bank team on their 40-year Euro transaction. They achieved a truly exceptional result with a large and diverse investor interest reflected in their longest dated benchmark deal to date. Going forward, this transaction will establish a valuable new reference point for Euro investors,” said Adrien de Naurois, Managing Director of SSA Syndicate, BAML.

“A truly fantastic outcome for the World Bank, executing their longest EUR benchmark to date. The World Bank capitalized on strong demand for duration, collecting an orderbook of exceptional quality and enabling them to price the largest transaction in this segment by a supranational entity, at the same level as their 30-year EUR benchmark in November. This is especially impressive because the trade priced at a level consistent with its peer group despite the World Bank not being included in the European Central Bank’s Pandemic Emergency Purchase Programme. Many congratulations to the World Bank team on this incredible success,” said Maud Le Moine, Head of SSA Origination, Goldman Sachs International.

“The World Bank has once again demonstrated its ability to set new precedents in the international capital markets, printing the first 40-year Euro benchmark from a non-European Supranational, Sovereign and Agency (SSA) issuer to date. The World Bank’s ability to access this very rare tenor for an impressive EUR 2 billion print is a notable achievement. This, combined with the pricing the World Bank was able to achieve, underlines the World Bank’s strong recognition and support from capital markets investors," said Asif Sherani, EMEA Head of Syndicate, HSBC.

“The transaction accomplished by the World Bank today speaks for itself. This was an astounding result for an audacious 40-year issuance which provided duration and diversification, impressing both peers and investors alike. It is always a privilege to team together with the World Bank as they continue to demonstrate their dynamism as a leader in the Euro market. We can only imagine what awaits this issuer in the future, but for today hope they enjoy the results of their hard work,” said Emmanuel Smiecench, Co-Head Public Sector, Natixis.

Investor Breakdown by Type

Asset Managers/Insurance/Pension Funds

87%

Banks/Bank Treasuries/Corporates

11%

Central Banks/Official Institutions

2%

Investor Breakdown by Geography

Germany

42%

France

22%

UK

10%

Rest of Europe

25%

Other

1%

Transaction Summary

Issuer:

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

Issuer rating:

Aaa /AAA (Moody's/S&P)

Amount:

EUR 2,000,000,000

Settlement date:

January 21, 2021

Maturity date:

January 21, 2061

Issue price:

99.885%

Issue yield:

0.203% annual

Denomination:

EUR 1,000 and multiples thereof

Coupon:

0.200% p.a., payable annually

Listing:

Luxembourg Stock Exchange

ISIN:

XS2289410420

Clearing system:

Euroclear/Clearstream

Joint lead managers:

BofA Securities, Goldman Sachs International, HSBC, Natixis

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

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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