WASHINGTON, D.C., September 19, 2023 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced a 5-year benchmark bond that matures in August 2028. The Sustainable Development Bond raised USD 3.5 billion to support the World Bank’s efforts to end extreme poverty and boost shared prosperity by enabling countries to address the most urgent challenges of development.
The transaction attracted more than USD 5.25 billion of investor interest with 75 high-quality orders led by official institutions, closely followed by global private sector investors including bank treasuries and asset managers. Investors focused on the World Bank’s triple-A credit quality, the liquidity its bonds offer, and the sustainable development use of funds.
The lead managers are Barclays Bank PLC, Citigroup Global Markets Limited, HSBC Bank plc, and Nomura International plc. The bond will be listed on the Luxembourg Stock Exchange, offers a spread versus the reference US Treasury of +14.7 basis points and has a semi-annual yield of 4.632%.
“Today’s transaction highlights the importance of private investors as drivers for sustainable development,” said Jorge Familiar, Vice President and Treasurer, World Bank. “Combined with equity contributions from member governments, private investors are key to the success of the World Bank’s business model that aims to eliminate poverty and boost shared prosperity on a livable planet.”
By Investor Type
Central Banks/Official Institutions
Europe/Middle East/Africa (EMEA)
Asset Managers/Insurance/Pension Funds
“Congratulations to the World Bank team for once again delivering a highly successful transaction. Testament to the strong support from the global investor base for its critical development mission, the World Bank’s strategic approach to pricing was rewarded with tight pricing and a high-quality orderbook. It is a privilege for Barclays to have worked on this transaction,” said Lee Cumbes, Head of Debt Capital Markets (DCM) and Public Sector EMEA, Barclays.
“The World Bank expertly navigated a congested macro calendar, with 13 central bank decisions this week to issue the second fixed-rate dollar benchmark of their fiscal year. The transaction benefited from global support of top tier fixed income investors keen to support the World Bank’s purpose to help its member countries achieve the Sustainable Development Goals. Citi is delighted to have been involved,” said Ebba Wexler, Head of Global Sovereign, Supranational and Agency (SSA) DCM, Citi.
“Congratulations to the World Bank team on today’s successful 5-year US dollar3.5 billion benchmark! The transaction met with strong support from global investors with a high-quality book. Another testament to IBRD’s exceptional global investor reach,” said Asif Sherani, Head of DCM Syndicate EMEA and Head of Public Sector DCM, HSBC.
“A highly anticipated return to the US dollar benchmark market for the World Bank, with a new US dollar 3.5 billion 5-year Global. IBRD has once again demonstrated the broadest investor appeal, delivering a granular orderbook spanning all key time-zones and investor types. As always official institutions were represented, demonstrating their support for the World Bank, while and the credit, liquidity and asset swap levels proved enticing for the private sector bank treasury community. Congratulations to the team,” said Spencer Dove, Head SSA DCM, Nomura.
World Bank (International Bank for Reconstruction and Development, IBRD)
USD 3.5 billion
September 26, 2023
August 1, 2028
4.625% p.a., payable semi-annually in arrear
Luxembourg Stock Exchange
Fedwire, Clearstream, Euroclear
Barclays Bank PLC, Citigroup Global Markets Limited, HSBC Bank plc, and Nomura International plc
Senior co-lead managers:
BMO Capital Markets Corp., CastleOak Securities, L.P., National Bank of Canada Financial Inc., and Wells Fargo Securities, LLC
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 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.
Heike Reichelt, The World Bank
+1 202 477 2880