The World Bank has successfully issued a 10-year sterling-denominated Sustainable Development Bond, raising GBP 700 million from global investors. The bond is set to mature in October 2034 and offers an annual coupon of 4.25% with an annual yield of 4.321%. It was priced at +11.3 basis points over the UK Gilt due September 2034.
Joint lead managers for this transaction include Citi, Morgan Stanley, NatWest Markets, and Santander. The bond will be listed on the Luxembourg Stock Exchange.
Jorge Familiar, Vice President and Treasurer at the World Bank, commented, “We are happy to be able to offer investors a new 10-year pound sterling-denominated World Bank bond, fulfilling pent-up demand for safe and liquid investments in the currency and tenor.”
Investor distribution by geography saw significant participation from the United Kingdom at 54%, followed by Asia at 31%. Central banks and official institutions were prominent investors, accounting for 60% of the allocation.
Ebba Wexler from Citi expressed satisfaction with the transaction's outcome: “Many congratulations to the World Bank team for a successful rare 10-year sterling benchmark...Citi is delighted to have been part of this great outcome.”
Ben Adubi from Morgan Stanley highlighted investor support: “Today's transaction highlights the support the World Bank continues to receive from investors who remain strong supporters of its goal of ending extreme poverty and promoting shared prosperity.”
Damien Carde from NatWest Markets noted that this issuance signifies "the tightest gilt spread across the SSA sector since January 2006," while Ali Nauman from Banco Santander emphasized their role as joint bookrunner in achieving impressive results in GBP capital markets.
The World Bank continues its mission to support sustainable development goals through strategic partnerships with investors. It remains committed to raising awareness for specific development challenges as part of its broader engagement in international capital markets.