World Bank Prices Sterling 1.5 Billion 7-year Benchmark

Washington  – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) priced a 7-year British pound sterling (GBP) benchmark bond due December 2028. The Sustainable Development Bond raised GBP 1.5 billion from investors to support the financing of its sustainable development activities.

The bond offers an annual coupon of 1.25% and an annual yield of 1.282%. It was priced at +32 basis points over the 1.625% UK Gilt due October 2028. Barclays, Citi, HSBC and JP Morgan are joint lead managers for the transaction. The bond will be listed on the Luxembourg Stock Exchange.

“This is an excellent result for our first benchmark of 2022. We thank the investors from the UK and around the world that participated,” said Jorge Familiar, Vice President and Treasurer, World Bank.“We appreciate their support for the World Bank’s mandate and work with its member countries to find sustainable solutions that reduce poverty and build shared prosperity in developing countries.”

Investor Distribution

By Geography   By Investor Type  
United Kingdom 76% Banks/Bank Treasuries/Corporates 64%
Europe 14% Asset Mangers/Insurance/Pension Funds 25%
Americas 6% Central Banks/Official Institutions 11%
Asia 4%    

Joint Lead Manager Quotes

“Achieving the longest and joint-largest sterling Supranational, Sovereign and Agency (SSA) benchmark during the busy first week of January is another display of the World Bank’s experience, leadership and depth of following in the SSA market. The size of the order book clearly reflects how the global investor base remains eager to support the important sustainable development activities of the World Bank across the globe. It was an honor that Barclays was able to be a part of this transaction,” said Lee Cumbes, Head of Debt Capital Markets EMEA, Barclays.

“We congratulate the World Bank on their first benchmark issuance of the 2022 calendar year and successful return to the sterling market. With an order book over GBP 1.9 billion and over 60 accounts participating, the GBP1.5 billion transaction confirms IBRD as one of a select group of issuers able to tap the sterling market in size. Citi was delighted to be part of this important transaction,” said Philip Brown, Head of Public Sector DCM, Citi.

“The World Bank opened 2022 in fine style with its highly successful benchmark GBP 7-year Sustainable Development Bond. The transaction generated significant high-quality demand with limited price sensitivity, underscoring a notable GBP 1.5 billion print. The strength of this outcome reinforces IBRD’s status as a leading SSA borrower in the sterling market. Many congratulations to the team!” said Asif Sherani, Head of Syndicate EMEA, HSBC.

“The World Bank kick-started 2022 with an impressive GBP 1.5 billion 7-year GBP Sustainable Development Bond, which offers a new reference point in this maturity. The high quality order book with particularly strong sponsorship from bank treasuries reflects the World Bank’s standing at the upper echelon of the GBP market. Congratulations to the World Bank team for a swift execution and we are delighted to be involved in this important transaction,” said Keith Price, Managing Director, Head of Frequent Borrowers Group, J.P. Morgan.

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 13, 2022
Maturity date: December 13, 2028
Issue price: 99.790%
Issue yield: 1.282% annual
Denomination: GBP 1,000
Coupon: 1.250% per annum
Coupon payment dates: Annually, every December 13 up to and including the Maturity Date
Listing Luxembourg Stock Exchange
ISIN XS2431006233
Clearing systems Euroclear/Clearstream
Joint lead managers Barclays, Citi, HSBC and JP Morgan

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