World Bank Prices GBP 1.5 Billion 5-year Benchmark Capping Productive Week in the Capital Markets

Washington – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) priced a 5-year British pound sterling (GBP) benchmark bond due October 2028. The Sustainable Development Bond raised an impressive size of GBP 1.5 billion from investors to support the financing of the World Bank’s work to fund sustainable development solutions in its member countries.

The bond offers an annual coupon of 3.875% and an annual yield of 3.889%. It was priced at +31 basis points over the 1.625% UK Gilt due October 2028. Citigroup, NatWest Markets, Santander and TD Securities are joint lead managers for the transaction. The bond will be listed on the Luxembourg Stock Exchange.

“We are pleased to start the new year off strong, offering the market an array of currencies and tenors in bonds that finance the World Bank’s sustainable development mandate,” said Jorge Familiar, Vice President and Treasurer, World Bank. “This transaction marks the largest sterling benchmark bond for Supranational Sovereign and Agency (SSA) issuers since the World Bank’s issuance in January 2022.”

 

Investor Distribution

By Geography   By Investor Type  
United Kingdom 59% Central Banks/Official Institutions 53%
Asia 32% Banks/Bank Treasuries/Corporates 25%
Europe / Middle East 6% Asset Managers/Insurance/Pension Funds 22%
Americas 3%    

“Citi is delighted to have acted as bookrunner on the World Bank’s first sterling benchmark of the calendar year. The GBP 1.5 billion benchmark issue size confirms World Bank’s commitment to the sterling market and providing investors with large, liquid benchmark transactions. A stellar outcome reflecting the on-going appeal of the World Bank to sterling fixed income investors,” said Ebba Wexler, Managing Director, Global Head of SSA Debt Capital Markets (DCM), Citigroup.

“The World Bank’s most difficult competition comes only from their own prior success. This is demonstrated through today’s 1.5 billion sterling transaction which represents the largest print in the SSA space since World Bank’s own issuance in January 2022. This issuance supports the World Bank’s sustainable development activities, and NatWest is proud to have been involved,” said Damien Carde, Managing Director, Head of FBG DCM, NatWest Markets.

“We are delighted to support World Bank on their sterling bond issue today. This syndication is a clear demonstration of the robust demand and long-standing support from the GBP investor base for the World Bank and its sustainable development mandate,” said Conor Hennebry, Global Head of Corporate Debt, Santander.

“The World Bank continues to prove its exceptional standing in global capital markets with today’s GBP 1.5 billion transaction, marking the fourth currency accessed in benchmark format by the World Bank this week alone. Despite a busy pipeline from the broader SSA market, the World Bank’s impressive results across currencies are a testament to the support from the global investor community,” said Laura O’Connor, Managing Director, Fixed Income Origination & Syndication, TD Securities.

 

Transaction Summary

Issuer World Bank (International Bank for Reconstruction and Development, IBRD)
Issuer rating: Aaa / AAA
Amount: GBP 1,500,000,000
Settlement date: January 11, 2024
Maturity date: October 2, 2028
Issue price: 99.955%
Issue yield: 3.889% annual
Denomination: GBP 1,000
Coupon: 3.875% p.a.
Coupon payment dates: 2 October of each year
Listing Luxembourg Stock Exchange
ISIN XS2744831210
Clearing systems Euroclear/Clearstream
Joint lead managers Citigroup, NatWest Markets, Santander and TD Securities