WASHINGTON, April 13, 2023 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced a CAD 900 million tap of its 5-year benchmark that matures on January 18, 2028, bringing the total amount to CAD 1.9 billion. World Bank Sustainable Development Bonds support the financing of projects in member countries in line with its mission to eradicate extreme poverty and boost shared prosperity in a sustainable manner.
The bond pays a semi-annual coupon of 3.70% p.a., has an issue price of 101.014%, and a final spread of 38.8 bps over the CAN 3.50% March 2028 reference bond, offering investors a yield of 3.465% (semi-annual). Joint lead managers for this transaction are BMO Capital Markets, CIBC Capital Markets, and Scotiabank.
Jorge Familiar, World Bank Vice President and Treasurer, said, “We are very happy to be back in the market so soon after re-opening the Sovereign, Supranational, and Agency (SSA) Canadian dollar primary markets with a benchmark transaction at the beginning of the year. The size of this tap shows that investors value liquid, triple-A rated products for their portfolios, and that they are keen to support the World Bank’s sustainable development activities.”
Investor Distribution
By Investor Type | By Region | ||
Banks/Bank Treasuries/Corporates | 58% | Canada | 79% |
Central Banks/Official | 27% | Europe/Middle East/Africa | 13% |
Asset Managers/Insurance/Pension Funds | 15% | Asia | 7% |
|
| Other | 1% |
Lead Manager Quotes
Sean Hayes, Managing Director and Head of US Syndicate, BMO Capital Markets, said, "In a volatile market with investors focused on liquidity, World Bank responds by re-opening its most recent Canadian dollar 5-year bond and nearly doubling the outstanding size. The domestic investor following continues to impress, with over 75% of the transaction being sold into Canada. The proof is in the consistent results; the World Bank is a prolific name in Canadian markets in the eyes of its core investors.”
Priya Radha, Managing Director & Global Head, Government Solutions, CIBC Capital Markets, said, “With its return to the market, the World Bank has once again established itself as the pre-eminent SSA issuer in Canadian dollars. Today's re-opening is noteworthy given the shifting sands and renewed focus around level 1 HQLA (high-quality liquid assets). The World Bank is the perfect issuer to pave the way for others considering the Canadian dollar market.”
Cesare Roselli, Global Head of SSA Origination, Scotiabank, said, “Scotiabank congratulates the World Bank on its second CAD-denominated capital markets offering of 2023. With this transaction, the World Bank reinforced its commitment to the Canadian dollar market as a strategic currency of its funding program. The World Bank is the sole SSA issuer to have supplied the CAD market so far in 2023, thus demonstrating a commitment to remain a reference for the Canadian investor base seeking exposure to a top credit.”
Transaction Summary
Issuer: | World Bank (International Bank for Reconstruction and Development, IBRD) |
Issuer rating: | Aaa/AAA (Moody’s/S&P) |
Tap Amount: | CAD 900,000,000 |
New Outstanding: | CAD 1,900,000,000 |
Settlement date: | April 24, 2023 |
Maturity date: | January 18, 2028 |
Issue price: | 101.014% |
Issue yield: | 3.465% semi-annually |
Coupon: | 3.70% per annum |
Denomination: | CAD 1,000 |
Listing: | Luxembourg Stock Exchange |
ISIN: | CA459058KM45 |
Clearing system: | CDS, Clearstream, Euroclear |
Joint lead managers: | BMO Capital Markets, CIBC Capital Markets, Scotiabank |
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
Investor Relations and Sustainable Finance, World Bank Treasury, debtsecurities@worldbank.org
