The World Bank (International Bank for Reconstruction and Development, IBRD) has initiated its Fiscal Year 2025 funding program with the pricing of a 7-year British pound sterling (GBP) benchmark bond due July 2031. The GBP 750 million Sustainable Development Bond (SDB) attracted investors seeking a secure and liquid product while supporting the World Bank's development initiatives.
The bond offers an annual coupon of 4.125% and an annual yield of 4.181%, priced at +19.6 basis points over the 0.25% UK Gilt due July 2031. BofA Securities, Barclays Bank PLC, Citigroup Global Markets Limited, and RBC Europe Limited are joint lead managers for the transaction. The bond will be listed on the Luxembourg Stock Exchange.
“This benchmark transaction jumpstarts what we expect to be a dynamic and productive fiscal year funding program for IBRD,” said Jorge Familiar, Vice President and Treasurer of the World Bank. “We appreciate the strong support from sterling investors and look forward to a year with a variety of offerings in currencies and tenors, all to be used to finance the World Bank’s sustainable development activities.”
Investor distribution by geography shows that 81% are from the United Kingdom, 14% from the Americas, and 5% from Europe/Middle East/Asia. By investor type, banks/bank treasuries/corporates constitute 75%, asset managers/insurance/pension funds make up 17%, and central banks/official institutions account for 8%.
“Congratulations to the World Bank team for their first public transaction of the new fiscal year with a landmark 7-year GBP transaction, securing the tightest spread to Gilts for a fixed rate Sovereign, Supranational and Agency (SSA) benchmark in this tenor in more than a decade,” said Alex Paterson, Managing Director, Head of SSA DCM at Barclays.
“A GBP 750 million transaction in the 7-year maturity reconfirms the strong and consistent support the issuer receives for its sustainable development purpose from the sterling investor base,” stated Kamini Sumra, Managing Director of SSA Origination at BofA Securities.
“Many congratulations to the World Bank team for a successful new 7-year benchmark, the first in this tenor since September 2023,” commented Ebba Wexler, Head of SSA Debt Capital Markets at Citi.
“The World Bank’s return to the GBP market was an important demonstration of continued liquidity and depth,” noted Jigme Shingsar, Managing Director of SSA DCM at RBC.
The transaction summary includes:
- Issuer: World Bank (International Bank for Reconstruction and Development)
- Issuer rating: Aaa / AAA
- Amount: GBP 750 million
- Settlement date: July 18, 2024
- Maturity date: July 31, 2031
- Issue price: 99.962%
- Issue yield: 4.181% annually
- Denomination: GBP 1,000
- Coupon: 4.125% per annum
- Coupon payment dates: Annually on July 31
- Listing: Luxembourg Stock Exchange
- ISIN: XS2861554645
- Clearing systems: Euroclear/Clearstream
The World Bank provides loans, guarantees, risk management products, and advisory services to middle-income countries to support Sustainable Development Goals (SDGs). It has been issuing sustainable development bonds in international capital markets for over seven decades.
Disclaimers note that this press release is not an offer for sale of securities by IBRD or World Bank. Any offering will occur solely based on relevant documentation prepared by or on behalf of the World Bank.
For further information:
Investor Relations and Sustainable Finance | World Bank Treasury | debtsecurities@worldbank.org