World Bank Returns to Sterling Market with GBP 850 Million 7-year Benchmark

Washington  – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) priced a 7-year British pound sterling (GBP) benchmark bond due August 2030.  The Sustainable Development Bond raised GBP 850 million from investors with funds going to support the financing of sustainable development activities in World Bank member countries around the globe.

The bond offers an annual coupon of 4.875% and an annual yield of 4.884%. It was priced at +39 basis points over the 0.375% UK Gilt due October 2030. BofA Securities, Deutsche Bank, NatWest and TD Securities are the joint lead managers for the transaction. The bond will be listed on the Luxembourg Stock Exchange.

“This transaction marks IBRD’s first in British pounds since January 2022. These bonds give GBP-focused investors a special opportunity to support the World Bank’s efforts to finance development projects that are inclusive of everyone, including women and young people, and provide resilience to shocks and are sustainable,” said Jorge Familiar, Vice President and Treasurer, World Bank.

Investor Distribution

Joint Lead Manager Quotes

“Congratulations to the World Bank on an impressive and long-awaited re-entry to the sterling market. A GBP 850 million print in 7-years reconfirms IBRD as one of a select group of issuers able to tap the longer end of the sterling market in good size and reflects the strong support the issuer receives for its sustainable development activities. Bank of America was delighted to be involved in this important transaction,” said Kamini Sumra, Managing Director, SSA Origination, BofA Securities.

“An impressive return to the sterling benchmark market from the World Bank after over a year of absence. The short 7-year benchmark suited the demand very well and complements the World Bank’s sterling curve nicely, proving that good things take time and that waiting for the right window and market conditions pay off. The transaction attracted robust investor demand from the UK bank treasury and real money community, while the 2030 maturity tapped into a rather undersupplied part of the curve following the recent wave of 5-year sterling issuances. The strong demand once again highlights investors’ support for the World Bank’s sustainable development purpose,” said Pieter van Blommestein, Vice President, SSA DCM Origination, Deutsche Bank.

The World Bank has successfully re-entered the sterling market, securing both size and duration whilst navigating a volatile backdrop. The presence of previously dormant investors in this transaction is testament to the loyal and diverse investor following which the World Bank exclusively enjoys, and which has been developed throughout a decades-long commitment to the sterling market. This issuance reflects our wider commitment and focus on supporting sustainable development, and we are proud to have been involved at NatWest,” said Damien Carde, Managing Director, Head of FBG DCM, NatWest Markets.

“We are delighted to be involved in the World Bank’s successful return to the sterling market. Today’s benchmark transaction is a clear demonstration of the long-standing support from the GBP investor base for the World Bank and its sustainable development mandate. Congratulations to the World Bank team on an excellent trade that adds important diversification to their global capital markets presence,”  said Laura O’Connor, Managing Director, Head of UK DCM, TD Securities.

Transaction Summary