WASHINGTON, D.C., February 7, 2023 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced a 7-year benchmark bond that matures in February 2030. The Sustainable Development Bond raised USD 5 billion to support the World Bank’s mission to combat poverty and boost shared prosperity in developing countries as they continue to navigate multiple crises.
The transaction, which represents the first USD 7-year benchmark in the Sovereign, Supranational, and Agency (SSA) sector in 2023, attracted 152 orders totaling more than USD 8.4 billion appealing to investors seeking high credit quality and a sustainable investment. The transaction attracted global interest from a diverse investor group with significant participation from banks, central banks, and asset managers, among others.
Barclays, BofA Securities, HSBC Bank plc, and J.P. Morgan are the lead managers. The bond, which will be listed on the Luxembourg Stock Exchange, offers a spread versus mid-swaps of +47 basis points, equivalent to +16.91 basis points versus the reference US Treasury, and has a semi-annual yield of 3.897%.
“We are very pleased to be back in the USD market in the 7-year space and see strong investor demand,” said Jorge Familiar Vice President and Treasurer, World Bank.”We appreciate investors’ support for the transaction and the sustainable development activities of the World Bank as we work with member countries to boost resilience and support the poor and vulnerable as countries deal with severe economic, climate, and social challenges amid worsening inequality.”
By Investor Type
Central Banks/Official Institutions
Asset Managers/Insurance/Pension Funds
Americas (ex USA)
Lead Manager Quotes
“The World Bank has once again delivered an immensely successful transaction in its first outing in the USD market this year, whilst also establishing the first 7-year for the SSA sector in 2023. The high-quality, granular order book, in excess of USD 8.4 billion, is a vote of confidence in the World Bank team’s accurate market view and precise assessment of fair value. Barclays was honored to have been able to support this transaction and the critical mission of the World Bank,” said, Lee Cumbes, Head of DCM and Public Sector, EMEA, Barclays.
“Congratulations to the World Bank team on an outstanding first USD benchmark of this calendar year. Despite a busy primary backdrop, the transaction was met with exceptional investor demand allowing the issuer to both tighten 2 basis points and print an upsized USD 5 billion transaction, a strong testament the World Bank’s credit quality and investor support for its sustainable development efforts,” said, Kamini Sumra, Managing Director, SSA Origination, BofA Securities.
“We would like to congratulate the World Bank on taking advantage of a constructive market backdrop and achieving an excellent outcome. The World Bank showcased its position as a household name in the SSA market, being the first issuer to access the 7-year tenor in USD in 2023, and for a USD 5 billion transaction. The deal was well supported by a high-quality USD 8.4 billion orderbook. We are very proud to have been involved at HSBC,” said, Asif Sherani, Head of DCM Syndicate, EMEA, HSBC.
“The World Bank returned to the USD benchmark market for the first time in the 2023 calendar year with an impressive USD 5 billion 7-year Sustainable Development Bond- the largest 7-year transaction from the issuer since 2021, and also the first 7-year USD SSA trade of the year. A high-quality orderbook of over USD 8.4 billion is a testament to the World Bank’s solid standing among the global investor community, and further evidence of the issuer’s deep access to the capital markets. J.P. Morgan is delighted to have been involved,” said, Keith Price, Head of Frequent Borrower Group, J.P. Morgan.
World Bank (International Bank for Reconstruction and Development, IBRD)
USD 5 billion
February 14, 2023
February 14, 2030
3.875% p.a., payable semi-annually in arrear
Luxembourg Stock Exchange
Fedwire, Clearstream, Euroclear
BofA Securities, Barclays, HSBC Bank plc, and J.P. Morgan
Senior co-lead managers:
CastleOak Securities, L.P., National Bank of Canada Financial Inc., Scotiabank Europe plc, and Wells Fargo Securities, LLC
About the World Bank