The World Bank has issued its first benchmark bond denominated in Hong Kong dollars, marking the largest supranational deal in the HKD market. The five-year Sustainable Development Bond raised HKD 7 billion and will be used to support the financing of the organization’s sustainable development activities across its member countries.
The bond, which offers an annual coupon of 3.012% and was priced at par, will settle locally through the Central Moneymarkets Unit (CMU) and is set to mature on September 5, 2030. Standard Chartered and HSBC served as joint lead managers for this issuance. The bond is also scheduled to be listed on the Luxembourg Stock Exchange.
Investor interest in the transaction was significant, with an orderbook exceeding HKD 11 billion—the largest for any supranational issuer in the Hong Kong dollar market. The majority of bonds were placed with bank treasuries (88%), while asset managers and other investor groups accounted for the rest.
“We are pleased by the strong investor demand that enabled us to price the largest supranational Hong Kong dollar transaction. Our global funding strategy allows us to raise funds efficiently for development by offering investors a high-quality, liquid product in a variety of currencies,” said Jorge Familiar, Vice President and Treasurer of the World Bank.
The World Bank, formally known as International Bank for Reconstruction and Development (IBRD), is rated Aaa/AAA by Moody’s and S&P. It operates as a global development cooperative owned by 189 nations and has been issuing bonds internationally for over 75 years to fund projects aimed at reducing poverty and promoting shared prosperity. These bonds follow Sustainability Bond Guidelines published by the International Capital Market Association.
Further information about these securities can be found at www.worldbank.org/debtsecurities.