Capital Market Investors Advance Sustainable Development by Subscribing to USD 3.5 Billion World Bank Bond

WASHINGTON – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced a 5-year benchmark bond that matures in August 2028. The Sustainable Development Bond raised USD 3.5 billion to support the World Bank’s efforts to end extreme poverty and boost shared prosperity by enabling countries to address the most urgent challenges of development.

The transaction attracted more than USD 5.25 billion of investor interest with 75 high-quality orders led by official institutions, closely followed by global private sector investors including bank treasuries and asset managers. Investors focused on the World Bank’s triple-A credit quality, the liquidity its bonds offer, and the sustainable development use of funds.

The lead managers are Barclays Bank PLC, Citigroup Global Markets Limited, HSBC Bank plc, and Nomura International plc. The bond will be listed on the Luxembourg Stock Exchange, offers a spread versus the reference US Treasury of +14.7 basis points and has a semi-annual yield of 4.632%.

“Today’s transaction highlights the importance of private investors as drivers for sustainable development,” said Jorge Familiar, Vice President and Treasurer, World Bank. “Combined with equity contributions from member governments, private investors are key to the success of the World Bank’s business model that aims to eliminate poverty and boost shared prosperity on a livable planet.” 

Investor Distribution  

“Congratulations to the World Bank team for once again delivering a highly successful transaction. Testament to the strong support from the global investor base for its critical development mission, the World Bank’s strategic approach to pricing was rewarded with tight pricing and a high-quality orderbook. It is a privilege for Barclays to have worked on this transaction,” said Lee Cumbes, Head of Debt Capital Markets (DCM) and Public Sector EMEA, Barclays.

“The World Bank expertly navigated a congested macro calendar, with 13 central bank decisions this week to issue the second fixed-rate dollar benchmark of their fiscal year. The transaction benefited from global support of top tier fixed income investors keen to support the World Bank’s purpose to help its member countries achieve the Sustainable Development Goals. Citi is delighted to have been involved,” said Ebba Wexler, Head of Global Sovereign, Supranational and Agency (SSA) DCM, Citi.

“Congratulations to the World Bank team on today’s successful 5-year US dollar3.5 billion benchmark! The transaction met with strong support from global investors with a high-quality book. Another testament to IBRD’s exceptional global investor reach,” said Asif Sherani, Head of DCM Syndicate EMEA and Head of Public Sector DCM, HSBC.

“A highly anticipated return to the US dollar benchmark market for the World Bank, with a new US dollar 3.5 billion 5-year Global. IBRD has once again demonstrated the broadest investor appeal, delivering a granular orderbook spanning all key time-zones and investor types.  As always official institutions were represented, demonstrating their support for the World Bank, while and the credit, liquidity and asset swap levels proved enticing for the private sector bank treasury community. Congratulations to the team,” said Spencer Dove, Head SSA DCM, Nomura.

Transaction Summary