WASHINGTON, D.C., January 9, 2025 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced a 10-year euro-denominated benchmark bond maturing in January 2035, raising EUR 3 billion.
The transaction attracted over 120 orders totaling over EUR 6 billion, appealing to investors across Europe and in Asia. The bond priced with a final spread to euro mid-swaps of +47 basis points and an equivalent annual yield of 2.975%. This equates to a spread vs. the reference Bund of +46 basis points.
BNP Paribas, Citi, Deutsche Bank, and Natixis are the lead managers for the transaction. The bond will be listed on the Luxembourg Stock Exchange.
“This EUR 3 billion benchmark caps off a tremendous week welcoming the new year with benchmark transactions across five markets and currencies. The resulting total for the week of nearly USDeq. 12 billion mobilized from the capital markets shows the strength of the World Bank’s position in the markets based on support from global investors seeking high quality, liquid investments to finance sustainable development,” said Jorge Familiar, Vice President and Treasurer, World Bank.
Investor Breakdown
By Type |
| By Geography |
|
Banks/Bank Treasuries/Corporates | 45% | France | 16% |
Central Banks/Official Institutions | 34% | Germany | 14% |
Asset Managers/Insurance/Pension Funds | 21% | Rest of Europe | 40% |
|
| UK | 8% |
|
| Asia | 14% |
|
| Others | 8% |
Lead Manager Quotes
“Congratulations to the World Bank on their return to the EUR market in the 10-year tenor, following the successful USD 6 billion 7-year trade earlier in the week. This is a testament to the robust support from their global investor base, as highlighted by a diverse orderbook with top-notch quality. BNP Paribas is honored to have supported the World Bank with this trade,” said Salma Guerich, SSA DCM, BNP Paribas.
"Congratulations to the World Bank on another landmark transaction. In a very busy primary market, this new issue achieved not only the World Bank's largest EUR orderbook of over EUR 6 billion but also its joint largest EUR transaction size, raising EUR 3 billion of new Sustainable Development Bonds. Both these metrics reflect the strong and ever-growing support from investors around the globe for the World Bank’s credit and mission. We are delighted to have been involved,” said Ebba Wexler, Head of Global Sovereign, Supranational and Agency (SSA) DCM, Citi.
“The World Bank has once again highlighted its strong market position and broad appeal among EUR global fixed-income investors with a successful 10-year EUR Sustainable Development Bond. With over 120 investors participating, this trade showcased IBRD’s robust credit quality and commitment to sustainable development, reaffirming its leadership in the SSA space. We are proud to have supported the World Bank in this transaction,” said Katrin Wehle, Head of SSA DCM, Deutsche Bank.
"With this successful EUR transaction, the World Bank has once again demonstrated its commitment to this strategic currency, securing the largest order book in its history. This achievement reflects the strong confidence investors place in the World Bank's mission and financial stability. Today's deal garnered enthusiastic interest from over 120 European and global investors, resulting in an impressive demand of EUR 6 billion. The exceptional quality of the order book, especially during such a busy week filled with numerous primary deals, underscores the World Bank's appeal in the market. This remarkable accomplishment not only strengthens the World Bank's established and liquid curve but also highlights the continued confidence in its name from high-quality accounts. Natixis is proud to have partnered with the World Bank on this transaction," said Thomas Leocadio, Co-Head, Public Sector DCM, Natixis.
Transaction Summary
Issuer: | World Bank (International Bank for Reconstruction and Development, IBRD) |
Issuer rating: | Aaa /AAA (Moody's/S&P) |
Amount: | EUR 3,000,000,000 |
Settlement date: | January 16, 2025 |
Maturity date: | January 16, 2035 |
Issue price: | 99.786% |
Issue yield: | 2.975% annual |
Denomination: | EUR 1,000 |
Coupon: | 2.950% p.a., payable annually |
Listing: | Luxembourg Stock Exchange |
ISIN: | XS2978479298 |
Clearing system: | Euroclear/Clearstream |
Joint lead managers: | BNP Paribas, Citi, Deutsche Bank, and Natixis |
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 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, Head of Investor Relations and Sustainable Finance, World Bank Treasury,
debtsecurities@worldbank.org
