WASHINGTON, D.C. January 3, 2024 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced a new 5-year CAD $1.4 billion benchmark that matures in January 2029. World Bank bonds support the financing of sustainable development projects, programs, and activities in IBRD member countries.
The 5-year benchmark transaction pays a semi-annual coupon of 3.50% p.a. and has an issue price of 99.678% and a final spread of 32.9 bps over the CAN 3.250% September 2028 reference bond, offering investors a yield of 3.571% (semi-annual). Joint lead managers for this transaction are CIBC, RBC Capital Markets, National Bank Financial and TD Securities.
“It has been a dynamic start to the new year for the World Bank, as we conclude successful transactions in three different currencies AUD, USD and now in CAD,” said Jorge Familiar, Vice President and Treasurer, World Bank. “This transaction has appealed to a strong diverse investor base across the globe, with investors seeking safe, liquid and positive impact investment opportunities in Canadian dollars.”
Investor Distribution by Investor Type | Investor Distribution by Region | ||
Central Banks/Official | 55% | Americas | 48% |
Banks/Bank Treasuries/Corporates | 34% | Asia | 34% |
Asset Managers/Insurance/Pension Funds | 11% | Europe/Middle East/Africa | 18% |
‘‘We congratulate the World Bank on the successful execution of its latest Maple bond issuance. We commend the institution's enduring tradition of inaugurating each calendar year with the first Maple offering. This commitment underscores the World Bank's dedication to the Canadian market, while the use of its Sustainable Development Bond label highlights the institution’s pivotal role in advancing both social and environmental sustainability on a global scale,’’ said Priya Radha, Managing Director & Global Head, Government Solutions, CIBC Capital Markets.
“The World Bank is known for demonstrating leadership in the capital markets. It was great to see the World Bank open the Canadian Maple market with a highly successful 5-year CAD 1.4 billion Sustainable Development Bond. The deal saw solid demand and momentum right out of the gate and that momentum continued throughout the process resulting in a diverse geographic and investor book. It was a pleasure and privilege to partner with the World Bank on this outstanding transaction,” said Scott Graham, Managing Director & Head of US Government and Sovereign Supranational and Agency (SSA) Finance, National Bank Financial.
“The World Bank successfully reopened the Maple SSA market in 2024 with another large size trade in excess of CAD 1 billion, further cementing the World Bank’s standing as the largest SSA maple issuer. The transaction highlights continued strong demand for World Bank paper in the Canadian dollar market. Congratulations to the World Bank team for a highly successful transaction,” said Alex Caridia, Managing Director, Head of Public Sector Markets, RBC Capital Markets.
"Many congratulations to the World Bank team for an impressive start to 2024, highlighted by today's CAD 1.4 billion deal. The demand from the broad spectrum of domestic and international investors reflects the exceptional track record of the World Bank as they continue to show leadership in the CAD market," said Laura O'Connor, Managing Director, Fixed Income Origination & Syndication, TD Securities.
Summary Terms:
Issuer: | World Bank (International Bank for Reconstruction and Development, IBRD) |
Issuer rating: | Aaa/AAA (Moody’s/S&P) |
Amount: | CAD 1,400,000,000 |
Settlement date: | January 12, 2024 |
Maturity date: | January 12, 2029 |
Issue price: | 99.678% |
Issue yield: | 3.571% semi-annually |
Coupon: | 3.50% per annum |
Denomination: | CAD 1,000 |
Listing: | Luxembourg Stock Exchange |
ISIN: | CA459058LB70 |
Clearing system: | CDS, Clearstream, Euroclear |
Joint lead managers: | CIBC, RBC Capital Markets, National Bank Financial Inc., 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 securities described herein are not committed or earmarked for lending to, or financing of, any particular projects or programs. Payments on the securities described herein are not funded by any particular project or program.
Contact
Investor Relations and Sustainable Finance | World Bank Treasury | debtsecurities@worldbank.org
