The World Bank has successfully returned to the euro market with a 10-year sustainable development bond, raising EUR 3 billion. This bond, set to mature in January 2035, attracted significant interest from investors across Europe and Asia, resulting in over 120 orders totaling more than EUR 6 billion. The bond offers an annual yield of 2.975% and is priced at a spread of +47 basis points over euro mid-swaps.
BNP Paribas, Citi, Deutsche Bank, and Natixis served as lead managers for this transaction. The bond will be listed on the Luxembourg Stock Exchange.
"This EUR 3 billion benchmark caps off a tremendous week welcoming the new year with benchmark transactions across five markets and currencies," stated Jorge Familiar, Vice President and Treasurer of the World Bank. He noted that nearly USD equivalent of 12 billion was mobilized from capital markets during the week.
The investor breakdown by type includes banks/bank treasuries/corporates at 45%, central banks/official institutions at 34%, and asset managers/insurance/pension funds at 21%. Geographically, investments came primarily from France (16%), Germany (14%), other parts of Europe (40%), the UK (8%), Asia (14%), and others (8%).
Lead managers expressed their satisfaction with the transaction's success. Salma Guerich from BNP Paribas highlighted "the robust support" from the global investor base. Ebba Wexler from Citi remarked on achieving "the World Bank's largest EUR orderbook." Katrin Wehle from Deutsche Bank praised IBRD’s strong market position among global fixed-income investors. Thomas Leocadio from Natixis commented on securing "the largest order book in its history."
The World Bank is rated Aaa/AAA by Moody's/S&P and operates as a global development cooperative owned by 189 nations. It provides financial products to middle-income countries to support Sustainable Development Goals.
This press release serves informational purposes only and does not constitute an offer for sale of securities by IBRD or World Bank.
For further inquiries:
Heike Reichelt
Head of Investor Relations and Sustainable Finance
World Bank Treasury
debtsecurities@worldbank.org