The World Bank has issued a USD 1.75 billion Sustainable Development Bond linked to the Secured Overnight Financing Rate (SOFR) Index, with a maturity date set for September 23, 2032. The bond was priced on September 16, 2025.
The offering attracted more than 50 orders and an order book of nearly USD 3.5 billion from a range of investors interested in high credit quality investments that also support sustainable development efforts. The bond carries a coupon rate of Compounded SOFR plus 50 basis points and will be listed on the Luxembourg Stock Exchange.
National Bank Financial, Scotiabank, and Wells Fargo acted as joint lead managers for the transaction.
Investor interest came mainly from banks, bank treasuries, and corporates, which accounted for 84% of allocations. Asset managers, insurance companies, and pension funds represented 10%, while central banks and official institutions made up the remaining 6%. By geography, investors from the Americas comprised 41% of the total; Asia contributed 33%; and Europe, the Middle East, and Africa accounted for 26%.
According to information provided by the World Bank: "The World Bank (International Bank for Reconstruction and Development, IBRD), rated Aaa/AAA (Moody’s/S&P), is an international organization. Created in 1944, it is the original member of the World Bank Group and operates as a global development cooperative owned by 189 nations. The World Bank provides loans, guarantees, risk management products, and advisory services to middle-income and other creditworthy countries to end extreme poverty and promote shared prosperity on a livable planet. It also provides leadership to coordinate regional and global responses to development challenges."
The organization has been issuing bonds in international capital markets for over seven decades to fund programs that aim to achieve positive social impact. Its bonds are aligned with guidelines published by the International Capital Market Association.
For more details about these securities or related sustainability initiatives by the World Bank, information can be found at www.worldbank.org/debtsecurities or in its Sustainable Development Bond Impact Report.
A statement from the press release clarifies: "This press release is not an offer for sale of securities of the International Bank for Reconstruction and Development ('IBRD'), also known in the capital markets as 'World Bank'. Any offering of World Bank securities will take place solely on the basis of the relevant offering documentation including, but not limited to, the prospectus, term sheet and/or final terms, as applicable, prepared by the World Bank or on behalf of the World Bank, and is subject to restrictions under the laws of several countries. World Bank securities may not be offered or sold except in compliance with all such laws. The World Bank Sustainable Development Bond Framework, the World Bank’s Sustainable Development Bond Impact Report, and the information set forth therein are not a part of, or incorporated by reference into, the offering documentation."
It was also noted that proceeds from this bond issue are not specifically committed or earmarked for any particular project or program.
Contact information for further inquiries was provided as Investor Relations and Sustainable Finance at debtsecurities@worldbank.org.