The World Bank has successfully launched a long 5-year British pound sterling benchmark bond, amounting to GBP 1 billion. This Sustainable Development Bond aims to support the financing of the World Bank's sustainable development activities in member countries. The bond is set to mature in July 2030.
Offering an annual coupon of 4.5% and an annual yield of 4.532%, the bond was priced at +19.5 basis points over the UK Gilt due October 2030. BMO Capital Markets, J.P. Morgan Securities plc, Nomura, and TD Securities served as joint lead managers for this transaction, which will be listed on the Luxembourg Stock Exchange.
Jorge Familiar, Vice President and Treasurer at the World Bank, expressed satisfaction with the launch: “We are delighted to begin the new year on a strong note, providing investors with a diverse range of currencies and maturities in bonds that support the World Bank’s sustainable development mandate, including this GBP 1 billion global bond.”
The investor distribution showed significant interest from different regions and types. By geography, 73% of investments came from the United Kingdom, followed by Europe/Middle East/Asia at 22%, and Americas at 5%. By investor type, Banks/Bank Treasuries/Corporates accounted for 68%, Central Banks/Official Institutions made up 21%, and Asset Managers/Insurance/Pension Funds represented 11%.
Sean Hayes from BMO Capital Markets praised the transaction: “Congratulations to the World Bank team on a fantastic GBP 1 billion benchmark transaction to start 2025." Sarah Lovedee from J.P. Morgan Securities added that it "represents a significant addition to its fixed rate curve," while Spencer Dove from Nomura highlighted its ability to stand out during one of Sterling issuance's busiest days.
Laura O'Connor from TD Securities noted that despite a busy market pipeline, "World Bank's impressive results across currencies are a testament to the global investor community's support."
The bond details include an issue price of 99.872% with an ISIN code XS2976284450. The denomination is GBP 1,000 with annual coupon payments every July until maturity.
For further information about World Bank bonds or their Sustainable Development Goals (SDGs) initiatives aligned with international guidelines for sustainability bonds, interested parties can contact Investor Relations through debtsecurities@worldbank.org.