Washington, D.C., July 13, 2021 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced a 5-year CAD 600 million Sustainable Development Bond that matures on July 22, 2026. World Bank bonds support the financing of a combination of green and social projects, programs, and activities for sustainable development in IBRD member countries. Each project is designed intentionally to achieve positive social and environmental impacts in line with the World Bank’s goals of eliminating extreme poverty and promoting shared prosperity.
The 5-year benchmark transaction pays a semi-annual coupon of 1.200% p.a. and has an issue price of 99.792% and a final spread of +29.90 bps over the 0.250% CAN March 2026 reference bond, offering investors a yield of 1.243% (semi-annual). Joint lead managers for this transaction are BMO Capital Markets, RBC Capital Markets, Scotiabank, and TD Securities.
Jingdong Hua, Vice President and Treasurer, World Bank, said: “We are pleased to be back in the Canadian market early in our fiscal year. This funding is critical as we continue to support countries to strengthen health systems, access and deploy vaccines, protect the poor and vulnerable, and restore economic growth. We thank Canadian investors for their ongoing support.”
Investor Distribution
By Geography | By Investor Type | ||
Americas | 63% | Banks/Bank Treasuries/Corporates | 53% |
Europe/Middle East/Africa | 23% | Asset Managers/Insurance/Pension Funds | 38% |
Asia | 14% | Central Banks/Official Institutions | 9% |
Sean Hayes, Head of US Syndicate & Credit Sales, BMO Capital Markets, said: "World Bank continues to demonstrate unwavering commitment to Canadian dollar primary markets to start its new fiscal year, with this deal representing its tenth consecutive fiscal year issuing a benchmark-sized CAD transaction. The World Bank’s presence has cultivated growth across high-grade capital markets for sustainable investment in Canada and continues to draw strong domestic and international support. BMO is a proud partner”.
Cesare Roselli, Global Head of SSA (Sovereign, Supranational, and Agency) Origination, Scotiabank, said: “Scotiabank is proud to have acted as bookrunner in the World Bank’s 5-year CAD 600 million Sustainable Development Bond, its first CAD-denominated transaction of the 2022 fiscal year, issued to support the financing of a combination of green and social projects, programs, and activities in member countries. The transaction resulted in strong involvement of the domestic ESG investment community in Canada and underscored the exceptional support that the World Bank enjoys in that jurisdiction”.
Jigme Shingsar, Managing Director, RBC Capital Markets, said: “The World Bank’s return to the CAD market reflects a consistent strategy of adding liquidity in key markets while fostering the continued development of the global market for sustainable development and ESG bonds. The third World Bank CAD Sustainable Development Bond of 2021 once again captured a very high-quality order book that reflected continued gains in distribution into Canadian investors which bodes well for the long-term development of the market for SSA borrowers in Canada”.
Sameer Rehman, Director, Government Finance, TD Securities, said: “The World Bank continues to prove it is the pre-eminent Maple issuer by establishing another benchmark reference point in its well-defined curve with today's new 5-year offering. With over CAD 11 billion now outstanding in the Maple market, the World Bank has strategically positioned itself to capture the full spectrum of currently active CAD investors, leading to a high quality orderbook. We are delighted to have been involved in this transaction, which once again reflects the global recognition of the World Bank name”.
Transaction Summary
Issuer: | World Bank (International Bank for Reconstruction and Development, IBRD) |
Issuer rating: | Aaa/AAA (Moody’s/S&P) |
Amount: | CAD 600,000,000 |
Settlement date: | July 22, 2021 |
Maturity date: | July 22, 2026 |
Issue price: | 99.792% |
Issue yield: | 1.243% semi-annually |
Coupon: | 1.200% per annum |
Denomination: | CAD 1,000 |
Listing: | Luxembourg Stock Exchange |
ISIN: | CA459058JY02 |
Clearing system: | CDS, Clearstream, Euroclear |
Joint lead managers: | BMO Capital Markets, RBC Capital Markets, Scotiabank, TD Securities |
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 (SDGs). World Bank bonds are aligned with the Sustainability Bond Guidelines published by the International Capital Market Association and as such support the financing of a combination of green and social, i.e., “sustainable development” projects, programs and activities in IBRD member countries as described in the World Bank Sustainable Development Bond Framework. The World Bank is also a member of the Executive Committee of the Green Bond, Social Bond, and Sustainability 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
Head of Investor Relations and Sustainable Finance
World Bank Treasury
debtsecurities@worldbank.org
