WASHINGTON, D.C., January 19, 2022 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) priced a 1 billion Norwegian krone-denominated 7-year floating rate Sustainable Development Bond. This is the longest floating rate benchmark printed in NOK for an SSA issuer.
The NOK 1 billion 7-year floating-rate bond matures on January 26, 2029. DNB acted as lead manager for the transaction. The bond offers a quarterly coupon of 3-month NIBOR + 150 bps and was priced at 110.173%.
Norwegian investors accounted for 100% of the distribution of bond. Banks represented the majority share of allocations at 93%, followed by asset managers and pension/insurance funds at 7%.
Andrea Dore, Head of Funding, World Bank Treasury, said, “We are happy to be back in the NOK market for the second time in two weeks with our longest floating rate tenor at seven years. We are grateful to investors for their ongoing support of the World Bank and our efforts to promote sustainable development in member countries as they continue to respond and recover from COVID 19.”
Nina Ahlstrand, Head of Sustainable Finance, DNB, said, “The World Bank plays an important role, with the power to drive sustainable development across the globe. We are very happy to be able to assist with their capital raising in the NOK market, enabling further financing for important projects with environmental as well as social positive impact.”
Transaction Summary
Issuer: | World Bank (International Bank for Reconstruction and Development, IBRD) |
Issuer rating: | Aaa /AAA (Moody's/S&P) |
Currency: | NOK |
Amount: | NOK 1,000,000,000 |
Settlement date: | January 26, 2022 |
Maturity date: | January 26, 2029 |
Re-offer price: | 110.173% |
Re-offer spread: | DM+1 bp |
Denomination: | NOK 10,000 |
Coupon: | 3-month NIBOR + 150 bps |
Coupon payment dates: | 26 January, 26 April, 26 July, and 26 October in each year, up to and including the Maturity Date |
Listing: | Luxembourg Stock Exchange |
ISIN: | XS2436817584 |
Clearing system: | Euroclear/Clearstream |
Lead manager: | DNB |
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 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.
Net proceeds of the bonds described herein are not committed or earmarked for lending to, or financing of, any particular projects or programs, and returns on the bonds described herein 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
