The World Bank has successfully priced a USD 6 billion benchmark bond set to mature in March 2030. This transaction attracted significant interest from global investors, accumulating a high-quality order book of USD 12.3 billion with over 170 investor orders. The bond issuance comes amidst volatile market conditions, showcasing the World Bank's robust access to capital markets.
"This is a tremendous vote of confidence for the World Bank, from our global investor base," stated Jorge Familiar, Vice President and Treasurer at the World Bank. He emphasized that the transaction underscores the organization's deep market access and highlights its strong investor following developed over decades.
The bond issuance was managed by Barclays, BofA Securities, RBC Capital Markets, and TD Securities. It will be listed on the Luxembourg Stock Exchange and offers a semi-annual coupon of 4.125%, with a spread of 14.7 basis points compared to the reference US Treasury.
Investors were primarily composed of bank treasuries, central banks, official institutions, and asset managers. Geographically, Europe/Middle East/Africa accounted for 43% of investments, followed by the Americas at 33%, and Asia at 14%.
Alex Paterson from Barclays commended the transaction as affirming IBRD’s leading position in the Sovereign, Supranational and Agency (SSA) market. Kamini Sumra from BofA Securities highlighted it as a demonstration of strategic timing amidst challenging market conditions. Jigme Shingsar from RBC Capital Markets noted the large and high-quality global investor base supporting this initiative. Laura O'Connor from TD Securities pointed out that this deal underscores the World Bank's pre-eminence among investors seeking liquid triple-A rated assets.
The World Bank continues its mission to end extreme poverty and promote shared prosperity through such financial initiatives. It remains committed to aligning its bonds with Sustainability Bond Guidelines to achieve positive developmental impacts globally.