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The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced a 10-year euro-denominated benchmark bond maturing in February 2034, raising EUR 3 billion.
The transaction attracted over 100 orders totaling EUR 4.7 billion, appealing to European and global investors seeking high credit quality and an investment that supports sustainable development at the longer end of the EUR curve.
BNP Paribas, NatWest Markets, Nomura, and TD Securities are the lead managers for the transaction. The bond will be listed on the Luxembourg Stock Exchange.
The bond priced with a final spread to euro mid-swaps of +23 basis points and an equivalent annual yield of 2.932%. This equates to a spread vs. the reference Bund of +60.8 basis points.
“The World Bank is delighted with the outstanding response from European and international investors for our 10-year Euro bond,” said Jorge Familiar, Vice President and Treasurer, World Bank. “Investors’ keen interest in a safe and liquid investment product combined with their interest in positive impact makes World Bank Sustainable Development Bonds an exceptional fit for their portfolios.”
Investor Breakdown by Type
| Banks/Bank Treasuries/Corporates | 58% |
| Asset Managers/Insurance/Pension Funds | 25% |
| Central Banks/Official Institutions | 17% |
Investor Breakdown by Geography
| France | 24% |
| Germany | 16% |
| Rest of Europe | 47% |
| Others | 13% |
Lead Manager Quotes
“Many congratulations to the World Bank team on today’s EUR outing. In recent years, the World Bank has established a strong presence with a well populated, liquid curve in EUR and their strategic commitment continues to be rewarded with excellent execution. This deal is no different and despite a slightly more volatile market backdrop,” said Myriam Zapata, Managing Director, ESG SSA DCM, BNP Paribas.
“The World Bank continues to go from strength to strength in Euro. This transaction represents one of the largest orderbooks for the World Bank yet, as well as their joint largest EUR print. A fantastic result that reflects NatWest’s wider commitment and focus on supporting sustainable development. We are proud to have been involved,” Damien Carde, Managing Director, Head of FBG DCM, NatWest Markets.
“Another triumph for the World Bank, cementing its position as a premier euro issuer. The new line with its granular and diversified orderbook adds another liquid point to the World Bank curve. It has been a pleasure for Nomura to be part of this fantastic trade,” said Spencer Dove, Managing Director, Head of SSA DCM, Nomura.
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“The World Bank continues to demonstrate its global investor appeal with its first EUR benchmark trade of the year, taking advantage of supportive market conditions by tapping into substantial demand for a 10-year product following a recent back up in yields. The breadth and quality of the order book enabled a EUR 3 billion print, cementing the World Bank’s standing as a leading benchmark issuer across all currency markets. TD Securities are delighted to have been involved in both this transaction and the ongoing support of their Sustainable Development mandate,” said Laura O’Connor, Managing Director, Debt Capital Markets, TD Securities.
Transaction Summary
| Issuer: | World Bank (International Bank for Reconstruction and Development, IBRD) |
| Issuer rating: | Aaa /AAA (Moody’s/S&P) |
| Amount: | EUR 3,000,000,000 |
| Settlement date: | February 14, 2024 |
| Maturity date: | February 14, 2034 |
| Issue price: | 99.726% |
| Issue yield: | 2.932% annual |
| Denomination: | EUR 1,000 |
| Coupon: | 2.900% p.a., payable annually |
| Listing: | Luxembourg Stock Exchange |
| ISIN: | XS2765024414 |
| Clearing system: | Euroclear/Clearstream |
| Joint lead managers: | BNP Paribas, NatWest Markets, Nomura, TD Securities |