Washington, D.C., September 6, 2023 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) priced a 7-year British pound sterling (GBP) benchmark bond due August 2030. The Sustainable Development Bond raised GBP 850 million from investors with funds going to support the financing of sustainable development activities in World Bank member countries around the globe.
The bond offers an annual coupon of 4.875% and an annual yield of 4.884%. It was priced at +39 basis points over the 0.375% UK Gilt due October 2030. BofA Securities, Deutsche Bank, NatWest and TD Securities are the joint lead managers for the transaction. The bond will be listed on the Luxembourg Stock Exchange.
“This transaction marks IBRD’s first in British pounds since January 2022. These bonds give GBP-focused investors a special opportunity to support the World Bank’s efforts to finance development projects that are inclusive of everyone, including women and young people, and provide resilience to shocks and are sustainable,” said Jorge Familiar, Vice President and Treasurer, World Bank.
Investor Distribution
By Geography |
| By Investor Type |
|
United Kingdom | 86% | Banks/Bank Treasuries/Corporates | 59% |
Europe / Middle East | 7% | Asset Mangers/Insurance/Pension Funds | 25% |
Americas | 4% | Central Banks/Official Institutions | 16% |
Asia | 3% |
|
|
Joint Lead Manager Quotes
“Congratulations to the World Bank on an impressive and long-awaited re-entry to the sterling market. A GBP 850 million print in 7-years reconfirms IBRD as one of a select group of issuers able to tap the longer end of the sterling market in good size and reflects the strong support the issuer receives for its sustainable development activities. Bank of America was delighted to be involved in this important transaction,” said Kamini Sumra, Managing Director, SSA Origination, BofA Securities.
“An impressive return to the sterling benchmark market from the World Bank after over a year of absence. The short 7-year benchmark suited the demand very well and complements the World Bank’s sterling curve nicely, proving that good things take time and that waiting for the right window and market conditions pay off. The transaction attracted robust investor demand from the UK bank treasury and real money community, while the 2030 maturity tapped into a rather undersupplied part of the curve following the recent wave of 5-year sterling issuances. The strong demand once again highlights investors’ support for the World Bank’s sustainable development purpose,” said Pieter van Blommestein, Vice President, SSA DCM Origination, Deutsche Bank.
The World Bank has successfully re-entered the sterling market, securing both size and duration whilst navigating a volatile backdrop. The presence of previously dormant investors in this transaction is testament to the loyal and diverse investor following which the World Bank exclusively enjoys, and which has been developed throughout a decades-long commitment to the sterling market. This issuance reflects our wider commitment and focus on supporting sustainable development, and we are proud to have been involved at NatWest,” said Damien Carde, Managing Director, Head of FBG DCM, NatWest Markets.
"We are delighted to be involved in the World Bank's successful return to the sterling market. Today's benchmark transaction is a clear demonstration of the long-standing support from the GBP investor base for the World Bank and its sustainable development mandate. Congratulations to the World Bank team on an excellent trade that adds important diversification to their global capital markets presence,” said Laura O'Connor, Managing Director, Head of UK DCM, TD Securities.
Transaction Summary
Issuer | World Bank (International Bank for Reconstruction and Development, IBRD) |
Issuer rating: | Aaa / AAA |
Amount: | GBP 850,000,000 |
Settlement date: | September 13, 2023 |
Maturity date: | August 15, 2030 |
Issue price: | 99.955% |
Issue yield: | 4.884% annual |
Denomination: | GBP 1,000 |
Coupon: | 4.875% p.a., payable annually |
Coupon payment dates: | Annually, every August 15 up to and including the Maturity Date |
Listing | Luxembourg Stock Exchange |
ISIN | XS2681943390 |
Clearing systems | Euroclear/Clearstream |
Joint lead managers | BofA Securities, Deutsche Bank, NatWest and TD Securities |
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, 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.
Contact
Heike Reichelt
Head of Investor Relations and Sustainable Finance
World Bank Treasury
debtsecurities@worldbank.org
