WASHINGTON D.C., January 7, 2025 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced a 5 billion Norwegian krone-denominated floating rate Sustainable Development Bond that matures on May 16, 2030.
The bond offers a quarterly coupon of 3-month NIBOR + 22 bps and was priced at 100%. DNB and Nordea acted as lead managers for the transaction.
Norwegian investors accounted for 72% of the distribution of the bond, followed by Swedish investors with 20%, and Danish investors with 8%. Most bonds were placed with bank treasuries at 90%, with the rest placed with asset managers.
"In a very active week in the primary market, we have priced the third World Bank benchmark of the day – a long 5-year Sustainable Development Bond raising NOK 5 billion,” said Andrea Dore, Head of Funding, World Bank Treasury. “This floating rate note offers investors the opportunity to invest in World Bank bonds in another currency, while supporting sustainable development activities in middle-income countries."
Lead manager quotes
“DNB is honored to have served as a dealer on this landmark World Bank Sustainable Development Bond transaction. The NOK 5 billion deal, with a long 5-year maturity, not only represents a significant achievement in size but also underscores IBRD's exceptional market presence in NOK. As the first NOK Sovereign, Supranational, and Agency (SSA) bond to be issued in 2025 this transaction sets an impressive benchmark for the NOK SSA market in this new year. The NOK 5 billion issue size also reflects the growing demand for high-quality sustainable investments in the NOK market,” said Margrethe Ouren, Director, FICC, DNB.
“World Bank once again demonstrated its unique profile in the Nordics and NOK SSA market with its new NOK 5 billion Sustainable Development Bond benchmark on the first trading week of the year. Navigating the busy global SSA and NOK market issuance activity in January, the deal is testament to IBRD’s credit profile and investor work in the Nordics over the years. Congratulations to the World Bank team on the very successful first NOK benchmark trade of 2025!” said Marcus Viitamäki, Head of SSA DCM, Nordea.
Transaction Summary
Issuer: | World Bank (International Bank for Reconstruction and Development, IBRD) |
Issuer rating: | Aaa/AAA (Moody's/S&P) |
Currency: | NOK |
Amount: | NOK 5,000,000,000 |
Settlement date: | January 16, 2025 |
Maturity date: | May 16, 2030 |
Issue price: | 100% |
Issue yield: | 3-month NIBOR + 22 bps |
Denomination: | NOK 10,000 |
Coupon: | 3-month NIBOR + 22 bps |
Listing: | Luxembourg Stock Exchange |
ISIN: | XS2976327523 |
Clearing system: | Euroclear/Clearstream |
Lead manager: | DNB and Nordea |
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
