WASHINGTON, D.C., September 27, 2023 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced a USD 500 million Sustainable Development Bond linked to the Secured Overnight Financing Rate (SOFR) maturing on October 4, 2030.
The 7-year SOFR-index linked note pays a coupon of Compounded SOFR + 46 basis points. The lead managers for the transaction are BMO Capital Markets, National Bank of Canada Financial, and HSBC. The bond will be listed on the Luxembourg Stock Exchange.
Investor Distribution
By Investor Type | By Region | ||
Banks/Bank Treasuries/Corporates | 85% | Europe/Middle East/Africa | 56% |
Asset Managers/Insurance/Pension Funds | 15% | Americas | 44% |
Transaction Summary
Issuer: | World Bank (International Bank for Reconstruction and Development) |
Issuer rating: | Aaa / AAA (Moody’s/S&P) |
Amount: | USD 500,000,000 |
Settlement date: | October 4, 2023 |
Maturity date: | October 4, 2030 |
Coupon: | Compounded SOFR + 46 bps |
Coupon payment dates: | October 4, January 4, April 4, July 4. |
Issue Price: | 100.00% |
Denomination: | USD 1,000 |
ISIN: | US459058KX08 |
Clearing systems: | Fedwire, Euroclear, Clearstream |
Listing | Luxembourg Stock Exchange |
Joint lead managers: | BMO Capital Markets, National Bank of Canada Financial, and HSBC |
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, The World Bank
+1 202 477 2880
debtsecurities@worldbank.org
