The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) has priced a EUR 2.5 billion 7-year euro-denominated benchmark bond maturing in August 2031. The transaction attracted over 75 orders totaling almost EUR 4 billion from European and global investors seeking safe and liquid investment opportunities with a positive impact on sustainable development.
BofA Securities, Deutsche Bank, Goldman Sachs International, and Natixis served as joint lead managers for the transaction. The bond will be listed on the Luxembourg Stock Exchange.
The bond priced with a final spread to euro mid-swaps of +16 basis points and an equivalent annual yield of 2.604%. This equates to a spread versus the reference Bund of +50.6 basis points.
"Our first euro-denominated deal of fiscal year 2025 has generated very strong demand from investors across the globe," said Jorge Familiar, Vice President and Treasurer at the World Bank. "With this successful issuance, we are raising EUR 2.5 billion towards impactful projects that align with our goals of reducing poverty and fostering shared prosperity on a livable planet."
Investor Breakdown by Type:
- Banks/Bank Treasuries/Corporates: 49%
- Asset Managers/Insurance/Pension Funds: 24%
- Central Banks/Official Institutions: 27%
Investor Breakdown by Geography:
- Europe: 74%
- Americas: 11%
- Asia: 15%
Kamini Sumra, Managing Director SSA Origination at BofA Securities, commented, "Congratulations to the World Bank team on an impressive return to the EUR market and a strong start to the new funding year." She added that the quality and diversity of the order book highlight investor commitment to World Bank's sustainable development activities.
Katrin Wehle, Managing Director, Head of SSA DCM at Deutsche Bank stated, "With today’s transaction, the World Bank has successfully complemented its Euro curve by a new liquid line in the 7-year space." She emphasized that achieving such results demonstrates high regard among Euro investors for the World Bank name and its development mission.
Dorothee Amar, Co-head of SSA at Goldman Sachs remarked, "The World Bank continues to be a strategic issuer in the EUR market," noting that this new benchmark demonstrated strength across international markets with large and diverse high-quality demand.
Thomas Leocadio, Co-Head Public Sector DCM at Natixis noted that despite volatile conditions for new issuances, "the World Bank once again reinforced its capabilities to achieve an outstanding trade that supports its ever-important sustainable development mission."
Transaction Summary:
- Issuer: World Bank (International Bank for Reconstruction and Development)
- Issuer rating: Aaa /AAA (Moody's/S&P)
- Amount: EUR 2.5 billion
- Settlement date: August 28, 2024
- Maturity date: August 28, 2031
- Issue price: 99.975%
- Issue yield: 2.604% annual
- Denomination: EUR 1,000
- Coupon: 2.6% p.a., payable annually
- Listing: Luxembourg Stock Exchange
- ISIN: XS2887897200
- Clearing system: Clearstream, Euroclear
About the World Bank:
The World Bank (IBRD), rated Aaa/AAA (Moody’s/S&P), is an international organization created in 1944 as part of the World Bank Group. It operates as a global development cooperative owned by 189 nations providing loans and advisory services to middle-income countries supporting Sustainable Development Goals aimed at ending extreme poverty and promoting shared prosperity.
World Bank bonds support financing programs furthering Sustainable Development Goals (SDGs). These bonds are aligned with Sustainability Bond Guidelines published by ICMA supporting green and social projects described in their Sustainable Development Bond Framework.
For more information on these bonds visit www.worldbank.org/debtsecurities or contact Investor Relations at debtsecurities@worldbank.org.