The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) priced a USD 700 million 7-year benchmark bond linked to the Secured Overnight Financing Rate (SOFR) index. The bond matures on August 19, 2027.
This transaction responds to investor demand from US financial institutions and global bank treasuries for high-quality, longer dated SOFR-linked floating rate product. The is the longest dated SOFR-linked bond issued by any SSA issuer.
An oversubscribed order-book facilitated growth of the transaction from the original USD 500 million, to a final USD 700 million. Sole lead manager for this transaction is Wells Fargo Securities.
Andrea Dore, Head of Funding, World Bank Treasury said: “We are committed to providing investors with high-quality investment options and continue to contribute to the development of the SOFR market. We are delighted to see many new investors participating in the transaction and would like to thank investors for their trust in the World Bank. We are also grateful for the strong collaboration with Wells Fargo”.
Carlos Perezgrovas, Head of SSA Origination, Wells Fargo Securities said: “Wells Fargo is delighted to partner with prestigious borrower, World Bank, to push the limits of capital markets and deliver the longest dated SOFR-Linked FRN bond issued by any SSA borrower in the market. An equally important achievement was to garner strong demand from the US investor base. World Bank, again, demonstrating true leadership in the space”.
by Investor Type
Europe, Middle East, Africa
World Bank (International Bank for Reconstruction and Development, IBRD)
Aaa /AAA (Moody’s/S&P)
August 19, 2020
August 19, 2027
Compounded SOFR + 43, Quarterly, ACT/360
SOFR Index where SOFR IndexStart