WASHINGTON, D.C., September 5, 2023 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced a 15-year euro-denominated benchmark bond maturing in September 2038, raising EUR 2.5 billion.
The transaction attracted over 100 orders totaling EUR 4.8 billion, appealing to European and global investors seeking high credit quality and a sustainable investment at the longer end of the EUR curve.
Commerzbank, Credit Agricole, Deutsche Bank, and Natixis 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 euro mid-swaps of +29 basis points and an equivalent annual yield of 3.487%. This equates to a spread vs. the reference Bund of 72.4 basis points.
“It’s fantastic to be back in the EUR market since kicking off our new fiscal year’s funding program. This transaction benefitted from exceptional investor demand with the largest EUR order book we have seen for a long-dated World Bond benchmark in euros. Our thanks go to investors for their support of the transaction – and ultimately our development mission,” said Jorge Familiar, Vice President and Treasurer, World Bank. “Demand from investors at the longer end of the curve for high quality assets aligns well to the World Bank’s sustainable development activities and long-term commitment to member countries to provide financing and technical expertise in support of programs aimed at eradicating poverty on a livable planet.”
By Investor Type
Asset Managers/Insurance/Pension Funds
Rest of Europe
Central Banks/Official Institutions
Lead Manager Quotes
“With this outing, the World Bank underlines their strategic commitment to the EUR market. Their second 15-year trade in 2023 garnered a record orderbook demonstrating the strength of demand in this part of the curve,” said Klaus-Peter Eitel, Director, Head of Public Sector, Commerzbank.
“The World Bank took advantage of a strong window of issuance with low supply and supportive market conditions to launch another stellar EUR benchmark transaction. The sizeable and high-quality order book allowed the World Bank to print the largest EUR deal for a supranational or agency in the 15-year sector so far this year aside from the EU, a testament to the continued appeal of the World Bank credit to international, and especially European, investors. Credit Agricole CIB is proud to be associated with the World Bank’s successful return to the EUR market in its new fiscal year,” said Eric Busnel, Deputy Head of SSA DCM, Credit Agricole CIB.”
“Congratulations to the World Bank team on another impressive euro benchmark. Primary market conditions in euros have not been straightforward following the volatility over the summer and IBRD’s 15-year benchmark stands out for the dynamic order book building and the very high quality of the demand which enabled the bond to be upsized to EUR 2.5 billion. The tenor choice appealed to a broad range of real money investors whilst the chosen execution window ensured maximum market attention on the transaction amidst a busy issuance pipeline. This result is a testament to the strong investor following the World Bank enjoys as a now regular issuer in the euro market, as well as to the support for its important sustainable development mission,” said Katrin Wehle, Head of SSA DCM Origination, Deutsche Bank.
“Congratulations to the World Bank team for today's successful 15-year euro benchmark. The World Bank has once again demonstrated their capabilities to access the EUR market by tapping into clear pocket of demand for long-dated products. Its highest orderbook ever demonstrates the depth of the EUR investor base for World Bank. The quality of the orderbook speaks for itself, and we could not think of a better way to kick-off the fiscal 2024 funding year for the World Bank in this strategic currency,” said Thomas Leocadio, Co-Head Public Sector DCM, Natixis.
World Bank (International Bank for Reconstruction and Development, IBRD)
Aaa /AAA (Moody's/S&P)
September 13, 2023
September 13, 2038
3.45% p.a., payable annually
Luxembourg Stock Exchange
Joint lead managers:
Commerzbank, Credit Agricole CIB, Deutsche Bank, Natixis
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.
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.
Net proceeds of the bonds described herein are not committed or earmarked for lending to, or financing of, any particular projects or programs. Payments on the bonds described herein are not funded by any particular project or program.
Heike Reichelt, Head of Investor Relations and Sustainable Finance, World Bank Treasury,