World Bank Prices Successful GBP 7-Year Global Benchmark Bond for Sustainable Development

The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) priced a 7-year GBP global benchmark, raising GBP 1.5 billion from investors around the globe.  World Bank bonds support the financing of sustainable development projects and programs in member countries.

The high-quality order book exceeded GBP 2.1 billion and attracted nearly 70 investors. The bond offers an annual coupon of 0.750% and a semi-annual yield of 0.776%.  It was priced at +39 basis points over the 1.5% UK Gilt due July 2026. HSBC, NatWest Markets and RBC CM were joint lead managers for this transaction.

George Richardson, Director, Capital Markets, World Bank said, “We are very pleased with the strong investor demand for the World Bank’s sterling benchmark – our first bond of the year in this strategic market.  As we work to carry out our important sustainable development mandate we are encouraged by their support.”

Investor Distribution by Investor Type Investor Distribution by Region
Banks/Bank Treasuries/Corporates 53% United Kingdom 69%
Asset Managers/Insurance/Pension Funds 27% Europe (excl. U.K.) 14%
Central Banks/Official Institutions 20% Americas 12%
    Asia & Middle East   5%

Joint Lead Manager Quotes

“Today’s new GBP 1.5 billion December 2026 benchmark is a formidable achievement for the World Bank, cementing the World Bank’s premier status in the sterling market with one of the largest prints ever from a supranational, sovereign and agency (SSA) and by far the largest in the rare 7-year tenor,” said Elena Farrell, Director SSA origination, HSBC.

“With their first sterling trade of 2020, the World Bank has printed the largest and tightest 7-year trade to date. This deal is testament to the World Bank’s unparalleled access to global investors and is a credit to their funding team. We are very proud to be involved at NatWest Markets,” said Damien Carde, Managing Director, Head of FBG DCM, NatWest Markets.

“The World Bank’s first sterling benchmark of 2020 highlights the unique qualities of their credit, including the singular ability to attract flight to quality flows in the face of volatile markets.  At GBP 1.5 billion it clearly sets a new benchmark for the market as the largest single tranche 7-year bond and reflects the growing importance of GBP for the SSA issuer universe, ” said Jigme Shingsar, Managing Director, Debt Capital Markets, RBC CM.

Transaction Summary

Issuer: World Bank (International Bank for Reconstruction and Development, IBRD)
Issuer rating: Aaa /AAA (Moody’s/S&P)
Amount: GBP 1.5 billion
Settlement date: February 4, 2020
Maturity date: December 15, 2026
Issue price: 99.817%
Issue yield: 0.776% semi-annual
Denomination: GBP 1,000 + GBP 1,000
Coupon: 0.750% per annum
Listing: Luxembourg Stock Exchange
ISIN: XS2113033281
Clearing system: Euroclear / Clearstream Luxembourg
Joint lead managers: HSBC, NatWest Markets and RBC CM

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.

Disclaimers

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.

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