World Bank Prices Successful Euro 2.5 billion 10-year Bond for Sustainable Development

    The World Bank (IBRD, Aaa/AAA) priced a 10-year Euro-denominated global benchmark bond, raising EUR 2.5 billion from institutional investors around the globe, to support the financing of its sustainable development activities. This is the World Bank’s second EUR global bond of 2020, following its EUR 3 billion 7-year global bond issued in January.

    The transaction represents World Bank’s largest 10-year Euro-denominated benchmark in over a decade, and the first negative-yielding 10-year Euro benchmark from a supranational issuer this year.  Barclays, DZ BANK, J.P. Morgan, and Société Générale are the lead managers for the transaction. The bond will be listed on the Luxemburg Stock Exchange.

    The EUR 2.5 billion bond was well oversubscribed, with an orderbook reaching EUR 3.7 billion. The bond priced with a final spread to mid-swaps of -6 basis points, 1 basis point tighter than initial guidance and equivalent to a yield of -0.10%. This equates to a spread vs. the reference Bund of +29.5 basis points.

    “We are very grateful to investors for their strong demand for one of the World Bank’s largest EUR bonds. This milestone transaction is a remarkable sign of support in the World Bank’s mission to end extreme poverty and promote shared prosperity in our member countries”, said Jingdong Hua, Vice President and Treasurer, World Bank

    Investor Distribution

    By Geography By Investor Type
    Europe 84% Banks/Bank Treasuries/Corporates 54%
    Asia 12%  Asset Managers/Insurance/Pension Funds 25%
    Americas 4% Central Banks/Official Institutions 21%

    Joint Lead Manager Quotes

    “It has been a pleasure to watch the World Bank continue to develop its presence in the Euro market, and today’s remarkable transaction was yet another step in that regard. Following on from the issuer’s EUR 1.5 billion 10-year Sustainable Development Bond last May and their EUR 3 billion 7-year benchmark this past January, this hugely successful benchmark adds yet another liquid point to World Bank’s EUR curve and refreshes the all-important 10-year benchmark reference, garnering upwards of EUR 3.7 billion in orders. As always, it is a privilege for Barclays to have worked on this spectacular transaction with World Bank,” said Lee Cumbes, Head of Public Sector EMEA, Barclays.

    “The World Bank was spot on with its 10-year EUR offering, showing their leadership in the capital markets. The transaction demonstrates, with over 110 orders, the outstanding access to the broadest range of investors the World Bank has, in all currency markets, at all times. DZ BANK is very proud to support the World Bank and its outstanding treasury team with their task to end extreme poverty and promote shared prosperity in a sustainable manner,” said Wolfgang Köhler, Board of Managing Directors Member, DCM, DZ BANK.

    “The World Bank is visibly expanding its presence in the Euro market this year and in turn being met with strong international reception, having returned for the second time in 2020 with its largest 10-year Euro benchmark in over a decade.  The EUR 2.5 billion transaction was the first benchmark-sized supranational 10-year bond to price at a negative yield, achieving solid size and quality despite a more challenging global rates backdrop upon book opening.  J.P. Morgan is honored to have been involved in this remarkable EUR trade as well as World Bank’s very successful GBP benchmark in the same tenor, both executed seamlessly side-by-side by the World Bank Treasury team,” said Keith Price, Managing Director, Head of Frequent Borrowers Group, J.P. Morgan.

    “Once again, The World Bank led the way, this time, by completing this successful double issuance. With a Euro 2.5 billion 10-year Euro benchmark the World Bank demonstrates the strong appetite of international investors for its high-quality signature. What is even more remarkable, is that they achieved this strong result while offering a negative yield at 10-year, a first for a supranational this year in Euros,” said Olivier Vion, Managing Director, Head of DCM and Syndicate SSA.

    Transaction Summary

    Issuer: World Bank (International Bank for Reconstruction and Development, IBRD)
    Issuer rating: Aaa/AAA
    Amount: EUR 2,500,000,000
    Settlement date: 21 February 2020
    Maturity date: 21 February 2030
    Issue price: 101.006%
    Issue yield: -0.100%
    Denomination: EUR 1,000
    Coupon: 0.0%
    Listing: Luxembourg Stock Exchange
    ISIN: XS2122894855
    Clearing systems: Euroclear, Clearstream, Luxembourg
    Joint lead managers: Barclays, DZ BANK, J.P. Morgan Securities, Societe Generale

    With annual issuances between US$50-US$60 billion, World Bank bonds support the financing of programs that support the Sustainable Development Goals. World Bank bonds are aligned with the sustainability bond guidelines published by the International Capital Markets Association (ICMA). The World Bank is also a member of the Executive Committee of the Green Bond and Social Bond Principles. A key priority for the World Bank’s capital markets’ engagement is building strategic partnerships with investors to promote the importance of private sector financing in sustainable development.


    This press release is not an offer for sale of securities of the International Bank for Reconstruction and Development (“IBRD”), also known in the capital markets as “World Bank”. Any offering of World Bank securities will take place solely on the basis of the relevant offering documentation including, but not limited to, the prospectus, term sheet and/or final terms, as applicable, prepared by the World Bank or on behalf of the World Bank, and is subject to restrictions under the laws of several countries. World Bank securities may not be offered or sold except in compliance with all such laws.