With Record Investor Demand World Bank Prices US Dollar 5 Billion 7-Year Sustainable Development Bond

WASHINGTON  – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced a 7-year benchmark bond that matures in January 2031.  The Sustainable Development Bond raised USD 5 billion from investors seeking to support the World Bank’s work to end extreme poverty and boost prosperity on a livable planet.

The transaction, the first in the Sovereign, Supranational and Agency (SSA) market in US dollars in 2024 generated the largest order book for a World Bank 7-year bond, led by bank treasuries, followed by official institutions and asset managers.  Investors focused on the World Bank’s triple-A credit, its classification as a high-quality liquid asset, as well as the sustainable development use of funds to achieve positive social and environmental impact in member countries.

The lead managers are Barclays Bank PLC, BMO Capital Markets, BNP Paribas, Citigroup Global Markets.  The bond will be listed on the Luxembourg Stock Exchange, pays a semi-annual coupon of 4.00%, offers a spread of 16.7 basis points versus the reference US Treasury, with a semi-annual yield of 4.082%.

“This is an outstanding result! Achieving one of IBRD’s largest ever orderbooks of over 175 investors was possible because of the World Bank’s 75-year track record as one of the most stable and predictable bond issuers,” said Jorge Familiar Vice President and Treasurer, World Bank.  “This has enabled it to build a loyal, globally diverse, and ever-increasing set of investors looking to support sustainable development in our member countries.“

Investor Breakdown by Type

Investor Breakdown by Geography

Lead Manager Quotes

“Congratulations to the World Bank team for opening the USD SSA market in 2024 with a record breaking 7-year transaction, gathering the second largest orderbook ever for IBRD and their largest in this tenor. The deal once again affirms the incredible global support from the investor base for the World Bank’s development mission. It is a privilege for Barclays to have assisted the World Bank team on this landmark transaction,” said Alex Paterson, Managing Director, Head of SSA DCM, Barclays.

“Congratulations to the World Bank on an outstanding reopening of primary markets that will jumpstart 2024 USD SSA supply. The 7-year SDB achieved tremendous global investor reception with orders in excess of USD 11 billion, paving the way for very high-quality USD 5 billion deal size. BMO was thrilled to partner with the World Bank on this fantastic execution,” said Sean Hayes, Head of US Syndicate, BMO Capital Markets.

“A superb start to 2024 for the World Bank printing USD 5 billion. With final books of US 11 billion, the bold decision to open the SSA USD market in 2024 with a longer dated transaction has been rewarded and set an impressive early benchmark for supranational issuance in the new year,” said Jamie Stirling, Global Head of SSA DCM, BNP Paribas.

“Congratulations to the World Bank on opening the USD SSA market in 2024 with a new 7-year Sustainable Development Bond. The transaction saw demand from over 160 investors, with IBRD again setting the tone and momentum for the SSA sector in the new year.  Citi was delighted to be a bookrunner on the transaction,” said Ebba Wexler, Head of Global Sovereign, Supranational and Agency (SSA) DCM, Citi.

Transaction Summary