The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) announced on May 8, 2024, the pricing of a USD 1.5 billion Sustainable Development Bond linked to the Secured Overnight Financing Rate (SOFR), maturing on May 15, 2028. The transaction garnered significant interest from investors, resulting in an order book of nearly USD 2.1 billion.
"Andrea Dore, Global Head of Funding, World Bank," expressed satisfaction with the offering, highlighting the importance of providing investors with a SOFR benchmark to meet their investment needs while supporting sustainable development initiatives. The bond, with a 4-year tenor, pays a coupon of Compounded SOFR +30 basis points.
The lead managers for the transaction are "BMO Capital Markets, CIBC, and Deutsche Bank AG." The bond will be listed on the Luxembourg Stock Exchange.
Investor Breakdown by Type:
- Banks/Bank Treasuries/Corporates: 66%
- Asset Managers/Insurance/Pension Funds: 29%
- Central Banks/Official Institutions: 5%
Investor Breakdown by Geography:
- Americas: 53%
- Europe/Middle East/Africa: 43%
- Asia: 4%
Lead Manager Quotes:
- Sean Hayes, Managing Director & Head of US Syndicate, BMO Capital Markets
- Christina Cho, Managing Director, Government Solutions Group, CIBC Capital Markets
- Katrin Wehle, Managing Director, Head of SSA DCM Origination, Deutsche Bank AG, London Branch
The World Bank (International Bank for Reconstruction and Development) issued the bond with the following details:
- Issuer Rating: Aaa / AAA (Moody’s/S&P)
- Amount: USD 1,500,000,000
- Settlement Date: May 15, 2024
- Maturity Date: May 15, 2028
- Coupon: Compounded SOFR + 30 bps
The World Bank, created in 1944, operates as a global development cooperative owned by 189 nations. It provides financial products and advisory services to support sustainable development and poverty eradication. The World Bank has been issuing sustainable development bonds for over 70 years to fund impactful programs.
For more information on World Bank bonds, visit www.worldbank.org/debtsecurities.