The World Bank has returned to the Canadian dollar bond market, issuing a 3-year CAD $1.5 billion Sustainable Development Bond that will mature in September 2028. The bond carries a semi-annual coupon rate of 2.90% and was priced at 99.946%, offering investors a yield of 2.919% (semi-annual). The transaction’s final spread is 9.8 basis points over the CAN 3.25% September 2028 reference bond.
Joint lead managers for this issuance were BMO Capital Markets, CIBC, National Bank Financial, and Scotiabank.
Jorge Familiar, Vice President and Treasurer at the World Bank, said: “It has been a dynamic start to the new fiscal year for the World Bank, as we conclude successful transactions for the World Bank in two different currencies this week - USD and now in CAD. This benchmark attracted interest from a wide range of investors, reflecting robust demand for secure, liquid investments that also deliver positive impact.”
Investor demand was strong, with banks and bank treasuries or corporates accounting for 55% of distribution by investor type, central banks or official institutions making up 23%, and asset managers/insurance/pension funds representing 22%. By region, most investors were from the Americas (85%), followed by Europe/Middle East/Africa (13%) and Asia (2%).
Lead managers commented on the success of the transaction:
“We are proud to have been involved in World Bank’s first Canadian dollar transaction since January 2024. With interest over CAD 2.3 billion at closing, the order book is the largest on record for a CAD-denominated transaction – a testament to the enduring nature of World Bank’s deep relationships with its global investors. Congratulations to the World Bank team on an extremely successful return to the CAD market,” said Massimo Antonelli, Head of International SSA at BMO Capital Markets.
“We are pleased to welcome back the World Bank to the Maple market with their successful 3-year offering. After more than a year’s absence, their return was met with exceptional investor demand, reaffirming the World Bank’s ability to re-open markets, and demonstrating how the World Bank’s ongoing commitment to impactful, sustainable development continues to strongly resonate with investors," said Priya Radha, Managing Director & Global Head, Government Solutions at CIBC Capital Markets.
“In the midst of the post-summer capital markets reopening in several currencies, the World Bank seized the opportunity to reopen the Canadian Maple market for the second half of the year with an outstanding Canadian dollar 1.5 billion 3-year benchmark bond. It is the largest CAD transaction year to dateand shows the World Bank’s continued support for the Canadian market. National Bank Financial was proud to partner with the World Bank with this outstanding opportunity,” said Scott Graham, Head of Public Sector New Issues at National Bank Financial Inc.
“Congratulations to the World Bank on a successful CAD 1.5 billion 3-year Sustainable Development Bond benchmark. This marks a truly impressive return to the CAD global bond market, commencing the World Bank’s 2025 Fiscal Year activity in this currency. This issuance garnered strong demand and broad participation from high caliber domestic and international investors. Scotiabank was pleased to be involved in such an important issuance," said Cesare Roselli, Global Head of SSA Origination at Scotiabank.
The bonds are listed on Luxembourg Stock Exchange and cleared through CDS, Clearstream and Euroclear systems.
The World Bank issues bonds internationally as part of its funding strategy for programs aimed at ending extreme poverty and promoting shared prosperity worldwide.