World Bank Prices CAD 750 Million Sustainable Development Bond

The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced a 7-year CAD 750 million global benchmark bond that matures on September 28, 2027. The World Bank launched the Sustainable Development Bond while raising awareness for the World Bank’s projects and programs that provide support to its member countries efforts to achieve universal health coverage and to prevent, detect and respond to the health threat posed by COVID-19.

The 7-year benchmark pays a semi-annual coupon of 0.875% and has an issue price of 99.824% and a final spread of 50.60 bps over the 1% CAN June 2027 reference bond, offering investors a yield of 0.901% (semi-annual). Joint lead managers for this transaction are BMO Capital Markets, CIBC Capital Markets, Scotiabank, and TD Securities.

“We wish to thank investors for their participation in our Sustainable Development Bond,” said Jingdong Hua, Vice President and Treasurer, World Bank. “We appreciate the interest both from Canadian investors seeking diversification with a global issuer, as well as from international investors that value IBRD as a way to increase their participation in a variety of markets, including Canadian dollars.”

Investor Distribution

By Investor Type

By Region

Banks/Bank Treasuries/Corporates




Asset Managers/Insurance/Pension Funds


Europe/Middle East/Africa


Central Banks/Official




“The World Bank’s commitment to regularly returning to the Canadian dollar bond market has once again captured the attention of global investors looking for sustainable investment opportunities. This transaction represents the largest-ever 7-year CAD Sovereign, Supranational and Agency (SSA) new issue from a non-domestic borrower. The 7-year tenor nicely suits the World Bank’s duration targets, while enhancing liquidity from the most prolific international SSA borrower in Canadian dollars,” said Sean Hayes, Managing Director, Head of US Syndicate & Credit Sales, BMO Capital Markets.

“Today marked the World Bank’s third public benchmark deal in the CAD market for 2020, clearly underlining their unparalleled investor receptivity globally. This reach is further underpinned by the emphasis on Environmental, Social and Governance (ESG) criteria, which in this instance is to raise awareness for the highly compelling Sustainable Development Goal #3 (Health and Well-Being), especially in the current pandemic. Congratulations to the World Bank team on continued success in the Canadian dollar market,” said Ali Gardezi, Director of European Debt Capital Markets, CIBC Capital Markets.

“Scotiabank is proud to support the World Bank in its third CAD Sustainable Development Bond offering of 2020, raising awareness for Sustainable Development Goal #3 (Good Health and Well-Being) while cross-cutting important social objectives such as poverty, gender equality and reduced inequalities. This transaction is the first 7-year benchmark by the World Bank in the Canadian dollar market and also represents the largest CAD 7-year benchmark by an SSA issuer. As testament to the World Bank’s premier standing in the Canadian dollar market, the issue received strong sponsorship from the ESG investment community in Canada,” said Cesare Roselli, Global Head of SSA Origination, Scotiabank.

“Congratulations to the World Bank team on their new 7-year Canadian dollar benchmark transaction. It reflects the exceptional track record of the World Bank in the CAD market and adds another liquid point to their benchmark curve. The 7-year maturity responded perfectly to increased investor demand for longer maturities against the global backdrop of lower interest rates. This transaction highlighted Sustainable Development Goal #3 Good Health and Well-Being which draws investor attention to the continued and immediate needs from developing countries to manage the additional challenges posed by COVID-19,” said Laura O’Connor, Director, Fixed Income Origination & Syndication, TD Securities.

Transaction Summary


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

Issuer rating:

Aaa/AAA (Moody’s/S&P)


CAD 750 million

Settlement date:

September 28, 2020

Maturity date:

September 28, 2027

Issue price:


Issue yield:

0.901% semi-annually


0.875% per annum


CAD 1,000


Luxembourg Stock Exchange



Clearing system:

CDS, Clearstream, Euroclear

Joint lead managers:

BMO Capital Markets, CIBC Capital Markets, Scotiabank, TD Securities

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