World Bank Taps Strong Demand for Long-dated, High-Quality Assets with New 15-Year EUR Sustainable Development Bond

WASHINGTON – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced a 15-year euro-denominated benchmark bond maturing in September 2038, raising EUR 2.5 billion.

The transaction attracted over 100 orders totaling EUR 4.8 billion, appealing to European and global investors seeking high credit quality and a sustainable investment at the longer end of the EUR curve.

Commerzbank, Credit Agricole, Deutsche Bank, and Natixis are the lead managers for the transaction. The bond will be listed on the Luxembourg Stock Exchange.

The bond priced with a final spread to euro mid-swaps of +29 basis points and an equivalent annual yield of 3.487%. This equates to a spread vs. the reference Bund of 72.4 basis points.

“It’s fantastic to be back in the EUR market since kicking off our new fiscal year’s funding program. This transaction benefitted from exceptional investor demand with the largest EUR order book we have seen for a long-dated World Bond benchmark in euros. Our thanks go to investors for their support of the transaction – and ultimately our development mission,” said Jorge Familiar, Vice President and Treasurer, World Bank. “Demand from investors at the longer end of the curve for high quality assets aligns well to the World Bank’s sustainable development activities and long-term commitment to member countries to provide financing and technical expertise in support of programs aimed at eradicating poverty on a livable planet.”

Investor Distribution

Lead Manager Quotes

“With this outing, the World Bank underlines their strategic commitment to the EUR market. Their second 15-year trade in 2023 garnered a record orderbook demonstrating the strength of demand in this part of the curve,” said Klaus-Peter Eitel, Director, Head of Public Sector, Commerzbank.

“The World Bank took advantage of a strong window of issuance with low supply and supportive market conditions to launch another stellar EUR benchmark transaction. The sizeable and high-quality order book allowed the World Bank to print the largest EUR deal for a supranational or agency in the 15-year sector so far this year aside from the EU, a testament to the continued appeal of the World Bank credit to international, and especially European, investors. Credit Agricole CIB is proud to be associated with the World Bank’s successful return to the EUR market in its new fiscal year,” said Eric Busnel, Deputy Head of SSA DCM, Credit Agricole CIB.”

“Congratulations to the World Bank team on another impressive euro benchmark. Primary market conditions in euros have not been straightforward following the volatility over the summer and IBRD’s 15-year benchmark stands out for the dynamic order book building and the very high quality of the demand which enabled the bond to be upsized to EUR 2.5 billion. The tenor choice appealed to a broad range of real money investors whilst the chosen execution window ensured maximum market attention on the transaction amidst a busy issuance pipeline. This result is a testament to the strong investor following the World Bank enjoys as a now regular issuer in the euro market, as well as to the support for its important sustainable development mission,” said Katrin Wehle, Head of SSA DCM Origination, Deutsche Bank.

“Congratulations to the World Bank team for today’s successful 15-year euro benchmark. The World Bank has once again demonstrated their capabilities to access the EUR market by tapping into clear pocket of demand for long-dated products. Its highest orderbook ever demonstrates the depth of the EUR investor base for World Bank. The quality of the orderbook speaks for itself, and we could not think of a better way to kick-off the fiscal 2024 funding year for the World Bank in this strategic currency,” said Thomas Leocadio, Co-Head Public Sector DCM, Natixis.

Transaction Summary