WASHINGTON, DC, July 22, 2021 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) has raised an additional USD 900 million for its February 2031 bond referencing the Secured Overnight Financing Rate (SOFR) Index, bringing the new outstanding amount to USD 1.5 billion. The first tranche of this SOFR index transaction was issued in February 2021 and with this tap it becomes the market’s largest bond in the ten-year sector that references SOFR.
This reopening responds to investor demand for high quality assets and reflects IBRD’s commitment to bolster the floating rate market linked to SOFR. SOFR is a rate based on transactions in the U.S. Treasury repurchase market and an alternative reference rate to USD LIBOR.
The bond matures on February 11, 2031 and pays a coupon of Compounded SOFR + 37 basis points (resetting daily and paid quarterly). Citi, Credit Agricole and Wells Fargo Securities were the joint lead managers of the transaction.
“We are extremely pleased that the World Bank could add liquidity to the market by tapping an existing bond. This gives investors another opportunity to gain access to the long end of the SOFR curve,” said Jingdong Hua, Vice President and Treasurer, World Bank. “At now USD 1.5 billion, this SOFR bond is the largest available at the 10-year part of the yield curve and helps advance the development of the SOFR market.”
By Investor Type
Notional amount (after tap):
USD 1.5 billion
July 29, 2021
February 11, 2031
Compounded SOFR + 37bps
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 on February 11, May 11, August 11, and November 11 of each year, from and including August 11, 2021, to and including the maturity date
Luxembourg Stock Exchange
Fedwire, Euroclear, Clearstream
Joint lead managers:
Citi, Credit Agricole and Wells Fargo 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.
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