World Bank Launches New Fiscal Year Funding Program with USD 5 Billion Sustainable Development Bond

The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced the first global benchmark of its new fiscal year that commenced on July 1. The USD 5 billion 5-year global benchmark Sustainable Development Bond matures on July 28, 2025.

Extremely strong demand from global investors for the USD benchmark led to an orderbook of over USD 6 billion, with more than 100 investor orders, anchored by central banks and official institutions. Other investors included bank treasuries, asset managers, as well as pension and insurance funds.

The 5-year benchmark pays a semi-annual coupon of 0.375% per annum and has an issue price of 99.866% and a final spread of 13.85bps over the 0.25% US Treasury due June 2025 reference bond, offering investors a yield of 0.402%. Joint lead managers for this transaction are Citi, Goldman Sachs International, Morgan Stanley, and TD Securities.

"This US dollar benchmark is a terrific start to our fiscal year," said World Bank Vice President and Treasurer, Jingdong Hua. "In this challenging period, investors from around the globe continue to value the World Bank's safety, liquidity, and purpose to finance sustainable development in its member countries. We are grateful for the support of market participants and look forward to working together in the year ahead."

Investor Distribution

"The World Bank has once again shown they're a preferred issuer among the world's biggest fixed income portfolios. Citi feels privileged to have played a role in this stellar start to IBRD's funding year with this USD 5 billion global benchmark which priced with the lowest coupon ever for an IBRD 5-year transaction," said Philp Brown, Head of SSA DCM, Citi.

"Many congratulations to the World Bank team for a great start of the new fiscal year with this USD 5 billion Sustainable Development Bond. The World Bank continues to impress with unparalleled market access and resilient support from investors, achieving the tightest 5-year spread since the start of COVID-19-related volatility. We were very pleased to be involved and to contribute to the World Bank's broader sustainable development mandate with this successful transaction," said Maud Le Moine, Head of SSA Origination, Goldman Sachs.

"Today's transaction was an outstanding result to mark the beginning of the new fiscal year for World Bank. At this important juncture for the global economy, investor support for the World Bank's purpose and triple-A rating is steadfast. The quality of the final orderbook reflects the global reach of the World Bank name in this part of the yield curve. Congratulations to the World Bank team," said Laura O'Connor, Director, TD Securities.

"The World Bank has initiated the funding program for their 2021 fiscal year with a fantastic new 5-year USD benchmark, which further underscores the strength of the World Bank's credit quality. In particular, the granular and high-quality orderbook demonstrates the World Bank's continued appeal to investors across the globe as a safe-haven asset. Morgan Stanley is delighted to have been part of this success!" said Ben Adubi, Head of SSA Syndicate, Morgan Stanley.

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