- Strong Demand: The World Bank’s €2.5B bond attracted nearly €4B in orders, reflecting high global investor confidence.
- Strategic Issuance: This marks the first euro-denominated bond of fiscal 2025, reinforcing the World Bank’s commitment to sustainable development.
- Investor Diversity: Broad participation from central banks, asset managers, and banks highlights the global appeal of World Bank bonds.
The World Bank has successfully issued a €2.5 billion 7-year euro-denominated bond, marking its first such issuance in fiscal year 2025. The bond, maturing in August 2031, attracted significant interest from global investors, with orders totaling nearly €4 billion.
Jorge Familiar, Vice President and Treasurer of the World Bank, emphasized the strong global demand: “Our first euro-denominated deal of fiscal year 2025 has generated very strong demand from investors across the globe. With this successful issuance, we are raising EUR 2.5 billion towards impactful projects that align with our goals of reducing poverty and fostering shared prosperity on a livable planet.“
The bond, which will be listed on the Luxembourg Stock Exchange, priced with a final spread to euro mid-swaps of +16 basis points and an annual yield of 2.604%, equivalent to a spread of +50.6 basis points over the reference Bund.
Kamini Sumra, Managing Director of SSA Origination at BofA Securities, praised the transaction: “The EUR 2.5 billion 7-year transaction is a testament to the World Bank’s strong position in European markets and unwavering support from investors. The quality and diversity of the orderbook highlights investor commitment to World Bank’s sustainable development activities.“
Investor participation was broad and diverse, with 49% of the bond allocated to banks, 24% to asset managers and pension funds, and 27% to central banks and official institutions. Geographically, European investors dominated, securing 74% of the issuance, followed by investors from Asia (15%) and the Americas (11%).
Katrin Wehle, Managing Director and Head of SSA DCM at Deutsche Bank, highlighted the strategic importance of the issuance: “This new bond attracted a very high-quality, broad-based and diverse order book. The fact that it was able to achieve this result demonstrates the high regard that Euro investors hold for the World Bank name and the importance of its development mission.“
The success of this issuance underscores the World Bank’s role in mobilizing capital for sustainable development projects worldwide, further solidifying its reputation as a key player in global finance.
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Dorothee Amar, Co-head of SSA at Goldman Sachs, summed up the significance of the transaction: “Goldman Sachs is proud to be a part of World Bank’s first EUR transaction in the new fiscal year and helping them with financing their global sustainable missions.“
This bond issuance not only marks a strong start for the World Bank in the new fiscal year but also reinforces its ongoing commitment to sustainable development through strategic financial initiatives.