The World Bank has issued its first US dollar benchmark bond for the 2026 fiscal year, raising $5 billion through a 10-year bond maturing in August 2035. The transaction saw record demand, with over $13 billion in orders from more than 180 investors globally. The investor base included bank treasuries, central banks and official institutions, as well as asset managers.
The bond carries a semi-annual coupon of 4.375% and was priced at a spread of 8.98 basis points above the reference US Treasury. It will be listed on the Luxembourg Stock Exchange.
According to Jorge Familiar, Vice President and Treasurer of the World Bank: "The remarkable size of this orderbook reflects deep trust and confidence in the World Bank from investors worldwide. The strong demand for the benchmark bond demonstrates our standing in global capital markets and the lasting relationships we have built with investors over seven decades, but also highlights the appeal of a liquid, high-quality investment. Investors are drawn to opportunities that offer stability, liquidity and contribute to the World Bank’s goal to end extreme poverty and boost prosperity on a livable planet."
Investor interest was split among different groups: banks and corporates accounted for 35%, central banks and official institutions another 35%, while asset managers, insurance companies, and pension funds made up 30%. Geographically, investors from the Americas represented 44% of demand, followed by Europe/Middle East/Africa (37%) and Asia (19%).
Lead managers for this issuance were BMO Capital Markets, HSBC, JP Morgan, and Wells Fargo.
Massimo Antonelli of BMO Capital Markets stated: “We are thrilled to have been involved in the World Bank's first USD benchmark of the new fiscal year. As the largest 10-year issue in the SSA market since 2023, the USD 5 billion benchmark size underscores the deep relationship between World Bank and its global investor base. Congratulations to the World Bank team on a tremendous outcome.”
Asif Sherani from HSBC said: “Congratulations to the World Bank team on a record-breaking USD 5 billion transaction. The joint largest USD 10-year SSA issuance ever, is testament to the issuer's deep investor base and the World Bank team's ability to seize strong issuance windows. The exceptional investor demand for the deal highlights the consistent investor support the World Bank receives globally. HSBC is delighted to have played a role in this transaction.”
Sarah Lovedee at J.P. Morgan commented: “We commend the World Bank team for an impressive return to the USD market, printing USD 5 billion or the largest USD 10-year SSA benchmark since 2023. With over USD 13 billion of investor demand, the orderbook is the largest-ever in this tenor for the issuer. J.P. Morgan is proud to have partnered with the World Bank for its successful first USD benchmark of the 2026 fiscal year.”
Carlos Perezgrovas from Wells Fargo Securities added: “We’re proud to have worked with World Bank on this milestone 10-year Sustainable Development Bond — matching its largest-ever issuance size for the tenor at USD 5 billion and drawing the biggest 10-year orderbook in institution’s history. This outcome highlights enduring strength of World Bank’s credit, market’s deep alignment with its development mission, and impact of thoughtful execution in competitive environment as multiple issuers looked to tap market this week.”
The proceeds from these bonds are not allocated toward any specific projects or programs but support general funding needs aligned with sustainability objectives set out by the organization. For more information about sustainable development bonds issued by The World Bank or details regarding their impact reporting practices can be found at their debt securities page.