World Bank Priced NOK 1 Billion 7-Year Sustainable Development Bond

The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) priced a 1 billion Norwegian krone-denominated 7-year floating rate Sustainable Development Bond. This is the longest floating rate benchmark printed in NOK for an SSA issuer.

The NOK 1 billion 7-year floating-rate bond matures on January 26, 2029. DNB acted as lead manager for the transaction. The bond offers a quarterly coupon of 3-month NIBOR + 150 bps and was priced at 110.173%.

Norwegian investors accounted for 100% of the distribution of bond. Banks represented the majority share of allocations at 93%, followed by asset managers and pension/insurance funds at 7%.

Andrea Dore, Head of Funding, World Bank Treasury, said, “We are happy to be back in the NOK market for the second time in two weeks with our longest floating rate tenor at seven years. We are grateful to investors for their ongoing support of the World Bank and our efforts to promote sustainable development in member countries as they continue to respond and recover from COVID 19.”

Nina Ahlstrand, Head of Sustainable Finance, DNB, said, “The World Bank plays an important role, with the power to drive sustainable development across the globe. We are very happy to be able to assist with their capital raising in the NOK market, enabling further financing for important projects with environmental as well as social positive impact.”

Transaction Summary

Issuer:

World Bank (International Bank for Reconstruction and Development, IBRD)

Issuer rating:

Aaa /AAA (Moody’s/S&P)

Currency:

NOK

Amount:

NOK 1,000,000,000

Settlement date:

January 26, 2022

Maturity date:

January 26, 2029

Issue price:

110.173%

Issue yield:

DM+1 bp

Denomination:

NOK 10,000

Coupon:

3-month NIBOR + 150 bps

Coupon payment dates:

26 January, 26 April, 26 July, and 26 October in each year, up to and including the Maturity Date

Listing:

Luxembourg Stock Exchange

ISIN:

XS2436817584

Clearing system:

Euroclear/Clearstream

Lead manager:

DNB

About the World Bank

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