World Bank Raises Record-breaking USD8 Billion from Global Investors to Support its Member Countries

The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced a USD8 billion 5-year global benchmark bond that matures on April 22, 2025. This is the largest ever US dollar denominated bond issued by a supranational.

Prior to the transaction, the World Bank held a global call to update select investors on the World Bank’s plans to support member countries in their efforts to address the human and economic impacts of COVID-19, with a focus on phase one of the World Bank’s response. The call was an opportunity to share details on how focusing on health projects and programs is crucial for member countries’ immediate response to COVID-19.

Extremely strong demand from global investors for the USD benchmark led to the World Bank’s largest orderbook of USD12.5 billion, with almost 190 investor orders, anchored by central banks and bank treasuries. Other investors included other official institutions, asset managers, as well as pension and insurance funds.

The 5-year benchmark pays a semi-annual coupon of 0.625% and has an issue price of 99.613% and a final spread of 36.5bps over the 0.50% US Treasury due March 2025 reference bond, offering investors a yield of 0.704%. Joint lead managers for this transaction are Barclays, BMO Capital Markets, Citi and TD Securities.

“In these unprecedented times, investor interest in the World Bank’s sustainable development mission is especially important,” said Anshula Kant, Managing Director and World Bank Group Chief Financial Officer. “We appreciate our investors’ support and confidence in the strong credit and role of the World Bank. This landmark transaction is part of the issuance program that supports the financing by the World Bank of sustainable development projects and programs in our member countries, including our member countries’ efforts to prevent, detect, and respond to the rapid spread of COVID-19. As countries around the world work to contain the impact of this virus, we are deploying a swift response in support of developing countries to strengthen health systems, sustain economies, and help save lives.”