The World Bank has raised USD 6.5 billion through a dual-tranche Sustainable Development Bond transaction, marking its largest order book to date. The transaction included a USD 3 billion 2-year bond maturing in August 2026 and a USD 3.5 billion 10-year bond maturing in August 2034.
Over 300 orders were received, totaling more than USD 22.7 billion. The dual-tranche format allowed for broad participation from global bond investors and accommodated diverse investment strategies across different maturity spectrums.
Barclays, BMO Capital Markets, Citi, and HSBC served as joint lead managers for the transactions. The bonds will be listed on the Luxembourg Stock Exchange.
The 2-year tranche priced at a spread of +6.9 basis points over the reference US Treasury, yielding 4.061% semi-annually. The 10-year tranche priced at a spread of +13.9 basis points over the reference US Treasury, yielding 3.951% semi-annually.
“This USD dual tranche issuance is a testament to the global investment community's continuous support for the World Bank,” said Jorge Familiar, Vice President and Treasurer of the World Bank. “The overwhelming interest for bonds in both maturities with a record-breaking order book for a World Bank transaction underscores the demand for safe and liquid investments combined with the opportunity to foster sustainable development in World Bank member countries.”
Investor breakdown by type shows that central banks and official institutions accounted for significant portions of both tranches: 75% for the 2-year bond and 43% for the 10-year bond.
Geographically, investors from EMEA (Europe, Middle East, and Africa) were prominent participants: they represented 44% of the orders for the 2-year bond and 55% for the 10-year bond.
Lead managers praised the success of this issuance:
“Congratulations to the World Bank team for their first Fixed Rate benchmark of the new fiscal year,” said Alex Paterson from Barclays.
“World Bank has staged a spectacular return to the fixed rate benchmark market,” commented Edward Mizuhara from BMO Capital Markets.
“Citi is delighted to be part of World Bank’s first fixed rate USD benchmark of fiscal year 2025,” said Ebba Wexler from Citi.
Asif Sherani from HSBC added, “An excellent result for the World Bank team with the issuance of its USD 6.5 billion dual-tranche bonds today.”
Transaction details are as follows:
- Issuer: World Bank (International Bank for Reconstruction and Development)
- Issuer rating: Aaa/AAA
- Amounts: USD 3 billion (2-Year), USD 3.5 billion (10-Year)
- Settlement dates: August 27, 2024 (2-Year), August 28, 2024 (10-Year)
- Maturity dates: August 27, 2026 (2-Year), August 28,2034 (10-Year)
- Issue prices:99.884% (2-Year),99.377%(10-Year)
- Issue yields:4.061%(semi-annual)(2-Year),3.951%(semi-annual)(10-Year)
The bonds support financing programs that further Sustainable Development Goals (SDGs) aligned with Sustainability Bond Guidelines published by ICMA.
For more information on World Bank bonds visit www.worldbank.org/debtsecurities or contact Investor Relations and Sustainable Finance at debtsecurities@worldbank.org