World Bank Launches $5 Billion 7-Year Bond for Sustainable Development Goals
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The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) priced a 7-year benchmark bond that matures in January 2031. The Sustainable Development Bond raised USD 5 billion from investors seeking to support the World Bank’s work to end extreme poverty and boost prosperity on a livable planet.
The transaction, the first in the Sovereign, Supranational and Agency (SSA) market in US dollars in 2024 generated the largest order book for a World Bank 7-year bond, led by bank treasuries, followed by official institutions and asset managers. Investors focused on the World Bank’s triple-A credit, its classification as a high-quality liquid asset, as well as the sustainable development use of funds to achieve positive social and environmental impact in member countries.
The lead managers are Barclays Bank PLC, BMO Capital Markets, BNP Paribas, Citigroup Global Markets. The bond will be listed on the Luxembourg Stock Exchange, pays a semi-annual coupon of 4.00%, offers a spread of 16.7 basis points versus the reference US Treasury, with a semi-annual yield of 4.082%.
“This is an outstanding result! Achieving one of IBRD’s largest ever orderbooks of over 175 investors was possible because of the World Bank’s 75-year track record as one of the most stable and predictable bond issuers,” said Jorge Familiar Vice President and Treasurer, World Bank. “This has enabled it to build a loyal, globally diverse, and ever-increasing set of investors looking to support sustainable development in our member countries.