World Bank’s SOFR Index-Linked Floating Rate Bond Draws Diverse Investor Demand

WASHINGTON  – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced a USD 1.25 billion Sustainable Development Bond linked to the Secured Overnight Financing Rate (SOFR) Index maturing on February 23, 2027.

The transaction attracted interest from a diverse set of investors seeking a high credit quality investment while supporting sustainable development. The book totaled USD 1.4 billion and over 30 orders. The 3-year SOFR-index linked note pays a coupon of Compounded Daily SOFR +28 basis points.

BMO Capital Markets, Scotiabank, and Wells Fargo Securities are the lead managers for the transaction. The bond will be listed on the Luxembourg Stock Exchange.

Jorge Familiar, Vice President and Treasurer, World Bank, said, “We are thrilled to return to the SOFR market in 2024 with a transaction that appealed to both returning and new SOFR investors. Our continued offering of SOFR-index linked bonds is just one example of our commitment to bring high quality, liquid products to the market that also offer investors an opportunity to support the World Bank’s mission to end extreme poverty and boost prosperity on a livable planet.”