WASHINGTON, D.C., April 5, 2023 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) successfully priced a 15-year Euro-denominated benchmark bond maturing in April 2038, raising EUR 2 billion.
The transaction, which represents the first Euro 15-year benchmark for Supranationals and Agencies in 2023, attracted over 90 orders totaling EUR 2.6 billion, appealing to European and global investors seeking high credit quality and a sustainable investment at the long end of the curve.
BNP Paribas, Credit Agricole CIB, DZ Bank, and NatWest 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 +25 basis points and an equivalent annual yield of 3.130%. This equates to a spread vs. the reference Bund of 76.4 basis points.
“The World Bank raises funds in the capital markets to finance projects that secure sustainable, inclusive, and resilient development in our member countries. This transaction offers European and global investors an opportunity to invest in these activities while at the same time benefitting from a safe and liquid asset for their Euro portfolios,” said Jorge Familiar, Vice President and Treasurer, World Bank. “This Sustainable Development Bond is another example of how the World Bank mobilizes private capital and the important role the private sector plays in financing development.”
Investor Distribution
By Geography | By Investor Type | |||
Germany | 31% |
| Asset Managers/Insurance/Pension Funds | 59% |
France | 31% |
| Banks/Bank Treasuries/Corporates | 28% |
Rest of Europe | 34% |
| Central Banks/Official Institutions | 13% |
Others | 4% |
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Lead Manager Quotes
“Another impressive Euro outing for the World Bank in 2023 who have firmly established themselves as a strategic issuer in Europe delivering a textbook execution in a far more difficult maturity than in recent years. Indeed, their ability to raise EUR 2 billion in a longer dated maturity emphasizes the strong support they receive from European investors as proven by the 96% distribution into the region,” said Jamie Stirling, Managing Director, Head of SSA DCM, BNP Paribas. “The timeline chosen by the World Bank enabled the transaction to capture maximum market focus and competitive pricing.”
“Following last January's new 10-year EUR benchmark and an absence from the EUR market in 2022, this successful EUR billion benchmark transaction marks the World Bank's return to the 15-year sector, filling a gap in their EUR curve”, said Eric Busnel, Deputy Head of SSA DCM, Credit Agricole CIB. “Taking swift advantage of a good window of issuance in the context of stabilizing markets, the start of the new quarter and the resumption of EUR investors' interest for primary supply after a couple of weeks of strong volatility, the World Bank gathered an order book of exceptional quality. Credit Agricole CIB is proud to have been associated with this very special transaction.”
“Perfect timing and swift execution for this new 15-year EUR 2 billion benchmark transaction by the World Bank. The orderbook quality was remarkable and the bond opened the 15-year segment for Supranationals and Agencies for this year,” said Patricio Bustos-Heppe, Senior Vice President, DZ Bank. “The World Bank and its Sustainable Development Bonds have clearly an outstanding reputation for the Euro investor community. DZ Bank is delighted to have been part of this very successful transaction.”
“With this trade, IBRD has issued the first 15-year benchmark in the Supranational and Agency space this year. This was an exceptional result, with a EUR 2 billion print coming at tight pricing versus European peers”, said Damien Carde, Managing Director, Head of SSA DCM, NatWest Markets. “For NatWest, this issuance reflects our wider commitment and focus on supporting sustainable development and we are incredibly proud to have been involved.”
Transaction Summary
Issuer: | World Bank (International Bank for Reconstruction and Development, IBRD) |
Issuer rating: | Aaa /AAA (Moody's/S&P) |
Amount: | EUR 2,000,000,000 |
Settlement date: | April 14, 2023 |
Maturity date: | April 14, 2038 |
Issue price: | 99.645% |
Issue yield: | 3.130% annual |
Denomination: | EUR 1,000 |
Coupon: | 3.10% p.a., payable annually |
Listing: | Luxembourg Stock Exchange |
ISIN: | XS2611177382 |
Clearing system: | Euroclear/Clearstream |
Joint lead managers: | BNP Paribas, Credit Agricole CIB, DZ Bank, NatWest Markets |
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
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.
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, the World Bank’s Sustainable Development Bond Impact Report, 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
