World Bank 5-year Canadian Dollar Sustainable Development Bond Attracts Diverse Investor Support

WASHINGTON  – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced a new 5-year CAD $1.4 billion benchmark that matures in January 2029. World Bank bonds support the financing of sustainable development projects, programs, and activities in IBRD member countries.

The 5-year benchmark transaction pays a semi-annual coupon of 3.50% p.a. and has an issue price of 99.678% and a final spread of 32.9 bps over the CAN 3.250% September 2028 reference bond, offering investors a yield of 3.571% (semi-annual). Joint lead managers for this transaction are CIBC, RBC Capital Markets, National Bank Financial and TD Securities.

“It has been a dynamic start to the new year for the World Bank, as we conclude successful transactions in three different currencies AUD, USD and now in CAD,” said Jorge Familiar, Vice President and Treasurer, World Bank. “This transaction has appealed to a strong diverse investor base across the globe, with investors seeking safe, liquid and positive impact investment opportunities in Canadian dollars.”

‘‘We congratulate the World Bank on the successful execution of its latest Maple bond issuance. We commend the institution’s enduring tradition of inaugurating each calendar year with the first Maple offering. This commitment underscores the World Bank’s dedication to the Canadian market, while the use of its Sustainable Development Bond label highlights the institution’s pivotal role in advancing both social and environmental sustainability on a global scale,’’ said Priya Radha, Managing Director & Global Head, Government Solutions, CIBC Capital Markets.

“The World Bank is known for demonstrating leadership in the capital markets. It was great to see the World Bank open the Canadian Maple market with a highly successful 5-year CAD 1.4 billion Sustainable Development Bond. The deal saw solid demand and momentum right out of the gate and that momentum continued throughout the process resulting in a diverse geographic and investor book. It was a pleasure and privilege to partner with the World Bank on this outstanding transaction,” said Scott Graham, Managing Director & Head of US Government and Sovereign Supranational and Agency (SSA) Finance, National Bank Financial.

“The World Bank successfully reopened the Maple SSA market in 2024 with another large size trade in excess of CAD 1 billion, further cementing the World Bank’s standing as the largest SSA maple issuer. The transaction highlights continued strong demand for World Bank paper in the Canadian dollar market. Congratulations to the World Bank team for a highly successful transaction,” said Alex Caridia, Managing Director, Head of Public Sector Markets, RBC Capital Markets.

“Many congratulations to the World Bank team for an impressive start to 2024, highlighted by today’s CAD 1.4 billion deal. The demand from the broad spectrum of domestic and international investors reflects the exceptional track record of the World Bank as they continue to show leadership in the CAD market,” said Laura O’Connor, Managing Director, Fixed Income Origination & Syndication, TD Securities.

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