The World Bank Demonstrates Depth of its Capital Markets Investor Base with Dual Tranche USD 6 Billion Sustainable Development Bond Transaction

WASHINGTON  – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced two Sustainable Development Bonds, raising a total of USD 6 billion from a USD 3 billion 2-year bond maturing in April 2026 and a USD 3 billion 7-year bond maturing in April 2031.

The transactions attracted over 260 orders totaling more than USD 12.7 billion. The dual tranche format, with points on the short and longer end of the yield curve, drew a globally diverse and broad base of fixed income investors and their investment strategies. As is common with World Bank benchmark transactions, leading investor groups included central banks and official institutions, including sub-national and municipal entities, as well private sector investors including bank treasuries, pension funds, insurance companies and asset managers.

HSBC Bank plc, J.P. Morgan Securities plc, Merrill Lynch International, Wells Fargo Securities, LLC are the lead managers for both transactions. The bonds will be listed on the Luxembourg Stock Exchange.

The 2-year tranche priced at a spread versus the reference US Treasury of +8.5 basis points, resulting in a semi-annual yield of 4.764%, and the 7-year tranche priced at a spread versus the reference US Treasury of +15.3 basis points, resulting in a semi-annual yield of 4.521%.

“This dual tranche transaction mobilized over 260 investor orders, demonstrating the wide breadth and depth of support that we enjoy from capital markets investors” said Jorge Familiar Vice President and Treasurer, World Bank. “This globally diverse stakeholder group is very important to the World Bank by providing financial support for its efforts to end extreme poverty and boost prosperity on a livable planet.”