World Bank Launches 2026 with £1.5B 5-Year Benchmark

WASHINGTON, D.C., July 7, 2025 - The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced a 5-year British pound sterling (GBP) benchmark maturing in October 2030. The Sustainable Development Bond raised GBP 1.5 billion from investors globally to support the financing of the World Bank's sustainable development activities in member countries.

The bond offers an annual coupon of 4.125% and an annual yield of 4.146%. It was priced at +19.4 basis points over the 0.375% UK Gilt due 22 October 2030. Bank of Montreal, NatWest, Nomura, and Santander are joint lead managers for the transaction. The bond will be listed on the Luxembourg Stock Exchange.

"This GBP 1.5 billion benchmark transaction marks an excellent start to our fiscal year 2026 funding program. The 2026 program will feature issuances across a range of currencies and maturities, tailored to meet the diverse needs of our global investor base. As always, we appreciate investors' continuous support for World Bank bonds, which enable financing for development projects aimed at promoting prosperous and resilient economies in middle-income countries," said Jorge Familiar Vice President and Treasurer, World Bank.

Investor Breakdown by Type

Lead Manager Quotes

"We are thrilled to have been involved in World Bank's successful return to the sterling market. Kicking off IBRD's new fiscal year in style, the rare GBP 1.5 billion benchmark issue size highlights the synergy between World Bank and its global investor base. Congratulations to the World Bank team on a stellar outcome!" said Sean Hayes, Managing Director, Global Head of Syndicate, Bank of Montreal.

"The World Bank team kicked off their new fiscal year in spectacular Sterling style. Against a market backdrop of large June 2025 redemptions and a lack of supply, the World Bank benefitted from a first mover advantage in summer markets and achieved one of IBRD's largest 5-year GBP transactions ever, and the largest 5-year GBP print in the Sovereign, Supranational and Agency (SSA) market year to date. Our participation with this deal reflects NatWest's wider commitment and focus on supporting sustainable development and we are proud to have been involved," said Damien Carde, Managing Director, Head of FBG DCM, NatWest.

"We commend the World Bank team on a highly successful return to the GBP market with this GBP 5-year Sustainable Development Bond. The consistency and commitment to the Sterling market have once again been rewarded, resulting in robust investor demand and a rapid bookbuild, demonstrating IBRD's leading position in the Sterling market. We are delighted to have been involved", said Spencer Dove, Managing Director and Head of DCM SSA, Nomura.

"Congratulations to the World Bank team on a landmark transaction to commence its new funding year. The GBP 1.5 billion issuance matches IBRD's size record for a 5-year GBP transaction set in January last year. A one basis point tightening in the GBP market further underscores the strength of the World Bank's name in the capital markets. The diversity of investors reflects the success of the World Bank's commitment and strategy in the GBP market," said Thibault George, SSA Syndicate, Santander.

Transaction Summary

About the World Bank