WASHINGTON, D.C., February 2, 2021 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) priced a 3.5 billion 10-year Sustainable Development Bond maturing in February 2031. The transaction, in the World Bank’s largest funding currency, appealed to investors seeking longer-dated US dollar bonds complemented by a sustainable development purpose that resonates especially with investors integrating Environmental, Social and Governance (ESG) criteria in their investment process. The deal attracted over 115 orders totaling more than $4.8 billion. Investors were globally diverse, with strong demand from central banks and official institutions as well as, pension funds, insurance companies and asset managers seeking high-credit quality assets to match their longer-term liabilities.
BofA Securities, Citi, JP Morgan, RBC Capital Markets 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 +13 basis points and an equivalent annual yield of 1.278%. This equates to a spread vs. the reference US treasury of +18.25 basis points.
“We are grateful for investors’ support for this 10-year US dollar benchmark which helps to fund the World Bank’s efforts to help our member countries respond to the immediate crisis and achieve their sustainable development goals,” said Jingdong Hua, Vice President and Treasurer, World Bank.“Access to long-term consistent funding supports a green, inclusive, resilient and sustainable recovery.”
By Investor Type
Central Banks/Official Institutions
Asset Managers/Insurance /Pension Funds
Joint Lead Manager Quotes
“Another impressive result for the World Bank in executing this $3.5 billion 10-year benchmark. The transaction was met with strong investor demand, attracting over 100 orders. The combination of growing investor interest following the deal’s announcement and an extremely high quality orderbook allowed them to price at the tightest spread to mid-swaps in this tenor of any Sovereign, Supranational, and Agency (SSA) issuer in the past three years. Congratulations to the World Bank team on this landmark issuance,” said Adrien de Naurois, Head of DCM SSA & EMEA IG Syndicate, BofA Securities.
“The World Bank has yet again shown its market leading access to liquidity across the yield curve with a new $3.5 billion 10-year benchmark to kick-start their fixed-rate US dollar issuance for this calendar year. The precise timing of the transaction, ahead of the Lunar New Year holiday period, enabled broad distribution with the highest quality investors across geographies. It also allowed for the tightest 10-year US dollar SSA print versus mid-swaps in over two years. Citi is delighted to have been involved in this fabulous transaction,” said Philip Brown, Managing Director, Head of SSA DCM, Citi.
“The World Bank impresses once again with a new 10-year Sustainable Development Bond, printing a US dollar 3.5 billion benchmark at mid-swap +13 basis points – the issuer’s second-largest US dollar 10-year deal size to date, and tightest mid-swap spread since 2015 for this tenor. The US dollar 4.8+ billion of demand was driven by high-quality orders especially from central banks and official institutions, a testament to the World Bank’s solid standing among global investors as well as a well-timed transaction from the issuer side. Well done to the World Bank team!” said Keith Price, Head of Frequent Borrower Group, J.P. Morgan.
"The World Bank’s first US dollar fixed-rate benchmark of 2021 was completed with textbook execution that reinvigorated the SSA market with the tightest 10-year print vs. mid-swaps since late 2018. The World Bank’s Sustainable Development Bonds continue to see strong support from investors who flock to the combination of high credit quality and the opportunity to support such a globally important mission," said Jigme Shingsar, Managing Director, RBC Capital Markets.
World Bank (International Bank for Reconstruction and Development, IBRD)
February 10, 2021
February 10, 2031
1.250% p.a., payable semi-annually in arrear
Luxembourg Stock Exchange
Fedwire, Clearstream, Euroclear
BofA Securities, Citi, JP Morgan, RBC Capital Markets
Senior co-lead managers:
Barclays, Credit Agricole CIB, Deutsche Bank, National Bank Financial, Wells Fargo
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.
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.
Head of Investor Relations and Sustainable Finance
World Bank Treasury