WASHINGTON, D.C. September 7, 2023 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced a new 7-year CAD 1 billion benchmark that matures on September 18, 2030. This is the World Bank’s largest 7-year transaction in Canadian Dollars.
The 7-year benchmark transaction pays a semi-annual coupon of 4.25% p.a. and has an issue price of 99.844% and a final spread of 52 bps over the CAN 1.25% June 1, 2030, reference bond, offering investors a yield of 4.276% (semi-annual). Joint lead managers for this transaction are CIBC, RBC Capital Markets, National Bank Financial and Scotiabank.
“It has been a busy week for the World Bank, as we conclude successful transactions in three different currencies EUR, GBP and now in CAD. We are pleased to re-enter the Canadian market for the first time this fiscal year and thank our investors for a continued support in the World Bank’s sustainable development mandate,” said Jorge Familiar, Vice President and Treasurer, World Bank.
Investor Distribution
By Investor Type | By Geography | ||
Central Banks/Official Institutions | 55% | Americas | 43% |
Asset Managers/Insurance/Pension Funds | 23% | Asia | 37% |
Banks/Bank Treasuries/Corporates | 22% | Europe/Middle East/Africa | 20% |
“In bringing the first 7-year Sovereign Supranational Agency (“SSA”) CAD bond offering since July 2021, the World Bank leveraged its pre-eminent role in the Canadian dollar market to re-open an important sector of the curve. Today’s transaction is noteworthy given the significant and diverse participation from Central Banks and Official Institutions in a Canadian dollar transaction. The World Bank is the ideal issuer to pave the way for others to consider longer tenors in the Canadian dollar market,” said Priya Radha, Managing Director & Global Head, Government Solutions, CIBC Capital Markets.
“In a CAD SSA market dominated by 3 to 5-year issuance, the World Bank has reopened the market for longer maturities with what is the first SSA 7-year benchmark supply since July 2021. That they were able to do this in convincing fashion with a heavily oversubscribed CAD 1 billion benchmark issue size demonstrates the special access World Bank enjoys with Canadian dollar investors and should encourage others to extend their curve in this market,” said Jigme Shingsar, Managing Director, US Debt Capital Markets, RBC Capital Markets.
“The World Bank once again proves to be a leader in Canadian Fixed Income Markets while simultaneously promoting a focus on sustainability. The World Bank was able to drive one of the largest ever CAD SSA 7-year bonds with an extremely high quality and diverse book. Being able to satisfy growing CAD needs out the curve demonstrates that the World Bank is willing to continue to develop an important global market where duration and liquidity are in high demand. NBF was pleased to partner with the World Bank on this highly successful transaction,” said Scott Graham, Managing Director, National Bank Financial.
“We congratulate the World Bank on successfully re-opening the 7-year CAD global bond market. The result was a highly successful CAD 1 billion 7-year Sustainable Development Bond benchmark, which showed broad participation from high quality Domestic and International investors. Scotiabank was delighted to be involved on such an important issuance,” said Cesare Roselli, Global Head of SSA Origination, Scotiabank.
Summary Terms:
Issuer: | World Bank (International Bank for Reconstruction and Development, IBRD) |
Issuer rating: | Aaa/AAA (Moody’s/S&P) |
Amount: | CAD 1,000,000,000 |
Settlement date: | September 18, 2023 |
Maturity date: | September 18, 2030 |
Issue price: | 99.844% |
Issue yield: | 4.276 % semi-annually |
Coupon: | 4.25% per annum |
Denomination: | CAD 1,000 |
Listing: | Luxembourg Stock Exchange |
ISIN: | CA459058KV44 |
Clearing system: | CDS, Clearstream, Euroclear |
Joint lead managers: | CIBC, RBC Capital Markets, National Bank Financial Inc., 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
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 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
