Record Demand for World Bank USD 5 Billion 7-Year Sustainable Development Bond

WASHINGTON  – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) priced a USD 5 billion 7-year Sustainable Development Bond maturing in September 2028. The deal attracted nearly 150 orders and an orderbook reaching over USD 10.2 billion, a record for the World Bank in the maturity. Orders were anchored by globally diverse central banks and bank treasuries, who were joined by asset managers, corporates and other official institutions. World Bank bonds support its mission to help members achieve sustainable and inclusive development.

Deutsche Bank, J.P. Morgan, Morgan Stanley and RBC Capital Markets are the lead managers for the transaction. The bond priced at a spread vs. the reference US treasury of + 8.3 basis points, resulting in an equivalent annual yield of 1.155%.

“This is a tremendous outcome for the first USD fixed rate benchmark of the World Bank’s new fiscal year and first public trade after the summer break,” said Jingdong Hua, Vice President and Treasurer, World Bank. “The robust demand that made this deal so successful also gives a strong signal of momentum for the market as a whole.” 

Investor Distribution:

By Geography By Investor Type
Europe/Middle East/Africa 53% Central Banks/Official Institutions 47%
Asia 28% Banks/Bank Treasuries/Corporates 38%
Americas 19% Asset Managers/Insurance/Pension Funds 15%

Lead Manager Quotes

“An outstanding result for the World Bank once again, taking advantage of a strong post-summer USD Supranational, Sovereign and Agency (SSA) market and attractive yield curve steepness to bring another 7-year Sustainable Development Bond benchmark, matching the size of the largest 7-year SSA USD benchmark which was launched by the issuer back in April this year. The headline orderbook breaking the World Bank’s prior records in that maturity coming out at $10.2 billion highlights the continued appeal of its triple-A credit to global investors, as well as to those seeking sustainable investment products. Deutsche Bank is delighted to have supported the World Bank in this prestigious transaction,” said Katrin Wehle, Managing Director, Sovereign, Supranational & Agency Origination, Deutsche Bank.

“The World Bank reopens the USD long-end issuance and kick starts its new fiscal year’s USD benchmark funding with an impressive $5 billion 7-year benchmark.  The Sustainable Development Bond attracted the largest USD 7-year order book in the SSA space to date, and priced at the tightest mid-swap reoffer spread for a 7-year benchmark since 2015 – again proving the World Bank’s global investor reach and widespread support for its development mission and its work in reaching the Sustainable Development Goals,” said Keith Price, Head of Frequent Borrower Group, J.P. Morgan.

“A privilege to be part of World Bank’s first USD benchmark of the fiscal year. The stunning reception of the 7-year benchmark, which saw demand in excess of $10.2 billion, further reaffirms the issuer’s appeal with the global institutional investor base,” said Ben Adubi, Head of SSA Syndicate, Morgan Stanley.

“The World Bank’s spectacular return to the USD market with an unprecedented second USD 5 billion 7-year benchmark this year for the World Bank, reinforces its status as the preeminent issuer of Sustainable Development Bonds. The sheer size and quality of the book as well as the pricing achieved highlights the incredible investor franchise they have built up over years of hard work. Our congratulations to the World Bank team for setting yet another benchmark for benchmarks,” said Jigme Shingsar, Managing Director, RBC Capital Markets.

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