The World Bank has issued a USD 5 billion benchmark bond maturing in October 2030, attracting over USD 11 billion in orders from more than 165 investors. The bond, which pays a semi-annual coupon of 3.500% and offers a spread of 5.93 basis points over the reference US Treasury, will be listed on the Luxembourg Stock Exchange.
Investor demand was led by bank treasuries, central banks and official institutions, and asset managers. The geographic distribution of investors was broad, with 43% from Europe, the Middle East, and Africa; 34% from the Americas; and 23% from Asia.
Jorge Familiar, Vice President and Treasurer at the World Bank, commented: “The outstanding result of this transaction reflects the steadfast commitment of our reliable, diversified global investor community to the World Bank’s mission. Their continued support enables us to unlock resources for projects that build the foundation to create jobs and improve lives, helping us move closer to a world free of poverty on a livable planet.”
The lead managers for the transaction were Citigroup Global Markets Limited, Goldman Sachs International, Morgan Stanley & Co. International plc, and Nomura International plc. Senior co-lead managers included National Bank of Canada Financial Inc, CastleOak Securities, L.P., Daiwa Capital Markets Europe Limited, and CIBC World Markets Corp.
Ebba Wexler, Head of SSA DCM at Citi, said: “Another successful US dollar benchmark for the World Bank team. This outcome reflects the strong support from the global Sovereign, Supranational and Agency (SSA) investor base of the World Bank's development mission and demand for high quality, liquid assets. Citi is proud to have had the opportunity to work on this transaction.”
Dorothee Amar, Co-head of SSA at Goldman Sachs, stated: “Compliments to the World Bank team on the extremely successful USD 5-year global benchmark issuance. The World Bank continues to garner strong backing from its international investor base, as evidenced by the impressive orderbook consisting of top-quality investors, as well as the record tight benchmark spread. Goldman Sachs is delighted to have participated in this transaction and contribute to the World Bank's mission of sustainable development.”
Ben Adubi, Managing Director and Head of SSA at Morgan Stanley, said: “It was impressive to see the World Bank team deliver their sensational 5-year US dollar Sustainable Development Bond. The issuance garnered a high-quality diverse order book, demonstrating the robust support for World Bank bond issuance. Morgan Stanley was honored to support World Bank in the primary markets again, aiding them in their crucial sustainable development efforts.”
Spencer Dove, Head of SSA DCM at Nomura, added: "Another impressive result for IBRD with their second US dollar 5-year Sustainable Development Bond of the year. Once again, the transaction delivered an extremely strong and diverse orderbook. As always for an IBRD trade, the quality and diversity of accounts reflects World Bank’s position as a market leader in the SSA US dollar market. Congratulations on a truly fantastic result."
The bond’s proceeds are not earmarked for specific projects or programs. Payments on these bonds are not funded by any particular project or program.
The World Bank has been issuing bonds in international capital markets for more than 75 years to fund programs that aim to reduce poverty and promote shared prosperity. Its bonds align with Sustainability Bond Guidelines set by the International Capital Market Association. Further information about these bonds is available on the World Bank’s website and in its Sustainable Development Bond Impact Report.
The organization operates as a global development cooperative owned by 189 nations and provides loans and advisory services to middle-income and other creditworthy countries.