Washington, D.C., January 6, 2022 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) priced a 7-year British pound sterling (GBP) benchmark bond due December 2028. The Sustainable Development Bond raised GBP 1.5 billion from investors to support the financing of its sustainable development activities.
The bond offers an annual coupon of 1.25% and an annual yield of 1.282%. It was priced at +32 basis points over the 1.625% UK Gilt due October 2028. Barclays, Citi, HSBC and JP Morgan are joint lead managers for the transaction. The bond will be listed on the Luxembourg Stock Exchange.
“This is an excellent result for our first benchmark of 2022. We thank the investors from the UK and around the world that participated,” said Jorge Familiar, Vice President and Treasurer, World Bank.“We appreciate their support for the World Bank’s mandate and work with its member countries to find sustainable solutions that reduce poverty and build shared prosperity in developing countries.”
Investor Distribution
By Geography |
| By Investor Type |
|
United Kingdom | 76% | Banks/Bank Treasuries/Corporates | 64% |
Europe | 14% | Asset Mangers/Insurance/Pension Funds | 25% |
Americas | 6% | Central Banks/Official Institutions | 11% |
Asia | 4% |
|
|
Joint Lead Manager Quotes
“Achieving the longest and joint-largest sterling Supranational, Sovereign and Agency (SSA) benchmark during the busy first week of January is another display of the World Bank’s experience, leadership and depth of following in the SSA market. The size of the order book clearly reflects how the global investor base remains eager to support the important sustainable development activities of the World Bank across the globe. It was an honor that Barclays was able to be a part of this transaction,” said Lee Cumbes, Head of Debt Capital Markets EMEA, Barclays.
“We congratulate the World Bank on their first benchmark issuance of the 2022 calendar year and successful return to the sterling market. With an order book over GBP 1.9 billion and over 60 accounts participating, the GBP1.5 billion transaction confirms IBRD as one of a select group of issuers able to tap the sterling market in size. Citi was delighted to be part of this important transaction,” said Philip Brown, Head of Public Sector DCM, Citi.
“The World Bank opened 2022 in fine style with its highly successful benchmark GBP 7-year Sustainable Development Bond. The transaction generated significant high-quality demand with limited price sensitivity, underscoring a notable GBP 1.5 billion print. The strength of this outcome reinforces IBRD’s status as a leading SSA borrower in the sterling market. Many congratulations to the team!” said Asif Sherani, Head of Syndicate EMEA, HSBC.
“The World Bank kick-started 2022 with an impressive GBP 1.5 billion 7-year GBP Sustainable Development Bond, which offers a new reference point in this maturity. The high quality order book with particularly strong sponsorship from bank treasuries reflects the World Bank’s standing at the upper echelon of the GBP market. Congratulations to the World Bank team for a swift execution and we are delighted to be involved in this important transaction,” said Keith Price, Managing Director, Head of Frequent Borrowers Group, J.P. Morgan.
Transaction Summary
Issuer | World Bank (International Bank for Reconstruction and Development, IBRD) |
Issuer rating: | Aaa / AAA |
Amount: | GBP 1,500,000,000 |
Settlement date: | January 13, 2022 |
Maturity date: | December 13, 2028 |
Issue price: | 99.790% |
Issue yield: | 1.282% annual |
Denomination: | GBP 1,000 |
Coupon: | 1.250% per annum |
Coupon payment dates: | Annually, every December 13 up to and including the Maturity Date |
Listing | Luxembourg Stock Exchange |
ISIN | XS2431006233 |
Clearing systems | Euroclear/Clearstream |
Joint lead managers | Barclays, Citi, HSBC and JP Morgan |
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.
Net proceeds of the securities described herein are not committed or earmarked for lending to, or financing of, any particular projects or programs, and returns on the securities described herein are not linked to the performance of any particular project or program. 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.
The World Bank Sustainable Development Bond Framework and the information set forth therein are not a part of, or incorporated by reference into, the offering documentation.
Contact
Heike Reichelt
Head of Investor Relations and Sustainable Finance
World Bank Treasury
debtsecurities@worldbank.org
