World Bank Prices GBP 1.5 Billion 5-year Benchmark Capping Productive Week in the Capital Markets

Washington, D.C., January 4, 2024 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) priced a 5-year British pound sterling (GBP) benchmark bond due October 2028. The Sustainable Development Bond raised an impressive size of GBP 1.5 billion from investors to support the financing of the World Bank’s work to fund sustainable development solutions in its member countries.

The bond offers an annual coupon of 3.875% and an annual yield of 3.889%. It was priced at +31 basis points over the 1.625% UK Gilt due October 2028. Citigroup, NatWest Markets, Santander and TD Securities are joint lead managers for the transaction. The bond will be listed on the Luxembourg Stock Exchange.

“We are pleased to start the new year off strong, offering the market an array of currencies and tenors in bonds that finance the World Bank’s sustainable development mandate,” said Jorge Familiar, Vice President and Treasurer, World Bank. “This transaction marks the largest sterling benchmark bond for Supranational Sovereign and Agency (SSA) issuers since the World Bank’s issuance in January 2022.”

Investor Distribution

“Citi is delighted to have acted as bookrunner on the World Bank’s first sterling benchmark of the calendar year. The GBP 1.5 billion benchmark issue size confirms World Bank's commitment to the sterling market and providing investors with large, liquid benchmark transactions. A stellar outcome reflecting the on-going appeal of the World Bank to sterling fixed income investors,” said Ebba Wexler, Managing Director, Global Head of SSA Debt Capital Markets (DCM), Citigroup.

“The World Bank’s most difficult competition comes only from their own prior success. This is demonstrated through today’s 1.5 billion sterling transaction which represents the largest print in the SSA space since World Bank’s own issuance in January 2022. This issuance supports the World Bank’s sustainable development activities, and NatWest is proud to have been involved,” said Damien Carde, Managing Director, Head of FBG DCM, NatWest Markets.

“We are delighted to support World Bank on their sterling bond issue today. This syndication is a clear demonstration of the robust demand and long-standing support from the GBP investor base for the World Bank and its sustainable development mandate,” said Conor Hennebry, Global Head of Corporate Debt, Santander.

“The World Bank continues to prove its exceptional standing in global capital markets with today's GBP 1.5 billion transaction, marking the fourth currency accessed in benchmark format by the World Bank this week alone. Despite a busy pipeline from the broader SSA market, the World Bank's impressive results across currencies are a testament to the support from the global investor community," said Laura O'Connor, Managing Director, Fixed Income Origination & Syndication, TD Securities.

Transaction Summary

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