World Bank Raises $6B in Dual Tranche Sustainable Bond Deal

WASHINGTON, D.C., April 3, 2034 - The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced two Sustainable Development Bonds, raising a total of USD 6 billion from a USD 3 billion 2-year bond maturing in April 2026 and a USD 3 billion 7-year bond maturing in April 2031.

The transactions attracted over 260 orders totaling more than USD 12.7 billion. The dual tranche format, with points on the short and longer end of the yield curve, drew a globally diverse and broad base of fixed income investors and their investment strategies. As is common with World Bank benchmark transactions, leading investor groups included central banks and official institutions, including sub-national and municipal entities, as well private sector investors including bank treasuries, pension funds, insurance companies and asset managers.

HSBC Bank plc, J.P. Morgan Securities plc, Merrill Lynch International, Wells Fargo Securities, LLC are the lead managers for both transactions. The bonds will be listed on the Luxembourg Stock Exchange.

The 2-year tranche priced at a spread versus the reference US Treasury of +8.5 basis points, resulting in a semi-annual yield of 4.764%, and the 10-year tranche priced at a spread versus the reference US Treasury of +15.3 basis points, resulting in a semi-annual yield of 4.521%.

"This dual tranche transaction mobilized over 260 investor orders, demonstrating the wide breadth and depth of support that we enjoy from capital markets investors" said Jorge Familiar Vice President and Treasurer, World Bank. "This globally diverse stakeholder group is very important to the World Bank by providing financial support for its efforts to end extreme poverty and boost prosperity on a livable planet."

Investor Breakdown by Type

Investor Breakdown by Geography

Lead Manager Quotes

"Congratulations to the World Bank team, returning to the bond market with a dual-tranche transaction and printing an impressive USD 3 billion 2-year and USD 3 billion 7-year bond on the back of a combined orderbook over USD 12.7 billion. This high-quality investor support allowed for their largest issuance since April 2021 and the largest USD dual tranche to date," said Adrien de Naurois, Head of EMEA IG Syndicate, BofA Securities / Merrill Lynch International.

"Today's US dollar dual-tranche transaction was a great result for the World Bank team. The trade highlights the quality and global appeal of the World Bank name and its Sustainable Development Bond format, taking a combined issue size of USD 6 billion and attracting a strong and diverse orderbook on both the 2-year and 7-year tranche. HBSC was delighted to be a part of the transaction," said Asif Sherani, EMEA Head of Syndicate and Head of Public Sector DCM, HSBC.

"The World Bank was quick to take advantage of the constructive market tone following the holiday break, moving ahead with the first Sovereign, Supranational and Agency (SSA) US dollar new issue of the quarter. With this well-timed transaction, the World Bank was able to achieve the largest US dollar outing of the year in the SSA market, choosing two under-supplied tenors and launching a USD 6 billion combined size across the two maturities. Congratulations to the World Bank team for this impressive transaction," said Sarah Lovedee, Head of Supranational DCM, J.P. Morgan.

"Utilizing good timing sense, the World Bank issued their first dual-tranche USD benchmark since March 2022. Robust demand allowed issuer to garner an orderbook more than USD 12.7 billion to price a combined USD 6 billion 2 & 7-year transaction. This issue becomes, the largest USD SSA transaction priced this year, an impressive result. Wells Fargo is delighted to be part of this trade," said Carlos Perezgrovas, Head SSA Origination, Wells Fargo Securities.

Transaction Summary

About the World Bank