World Bank Prices GBP 1 Billion 5-year Sustainable Development Bond

The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) priced a long 5-year British pound sterling benchmark bond due July 2026, raising GBP 1 billion from investors globally to support the financing of its sustainable development activities.

The bond offers an annual coupon of 0.250% and an annual yield of 0.305%. It was priced at +26 basis points over the 1.5% UK Gilt due July 2026. Bank of America, HSBC, JP Morgan, and RBC Capital Markets are joint lead managers for the transaction. The bond will be listed on the Luxembourg Stock Exchange.

Jingdong Hua, Vice President and Treasurer, World Bank said, “We are happy to see continued robust participation from sterling investors for high-quality credit that is contributing to a better and more sustainable future. We thank investors for their support of the World Bank’s development mission to improve the lives of people in our member countries.”

The high-quality order book attracted nearly 40 investors. Most of the transaction was placed with investors in the United Kingdom with banks and official institutions representing the bulk of participation.

Investor Distribution

By Geography

By Investor Type

United Kingdom

78%

Banks/Bank Treasuries/Corporates

60%

Americas

18%

Asset Managers / Insurance / Pension Funds

32%

Europe (excluding U.K.)

3%

Central Banks / Official Institutions

8%

Asia

1%

Joint Lead Manager Quotes

Adrien de Naurois, SSA Syndicate, Bank of America said, “Congratulations to the World Bank team on another strong return to the sterling market. The issuer’s unwavering support for sustainable development has never been more critical and today’s transaction once again demonstrated that this is a message which clearly resonates with the investor base.”

Matthieu Batard, Head of SSA Syndicate, J.P. Morgan said, “World Bank remains at the forefront of the GBP SSA market. With their fifth sterling transaction of 2020, World Bank have now been active in all tenors from 3- to 10-years – all above GBP 1 billion size. Launching a sizeable trade in November in one of the last windows of the year highlights World Bank’s exceptional standing with a diverse investor base.”

Asif Sherani, EMEA Head of Syndicate, HSBC said, “IBRD has achieved yet another highly successful outcome in the sterling market with its fifth benchmark in the calendar year. The deal generated high-quality demand with limited price sensitivity, allowing a GBP 1 billion print. This result, alongside the speed of execution, underlines IBRD’s strong recognition in the GBP market.”

Stuart McGregor, Managing Director, SSA Syndicate, RBC Capital Markets said, “The World Bank keeps raising the bar for liquidity in the GBP market with what is now with their fifth consecutive over 1 billion GBP benchmark new line of 2020. World Bank has clearly demonstrated that the combination of stellar credit quality and an opportunity to support sustainable goals is a winning combination with investors.”

Transaction Summary:

Issuer:

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

Issuer rating:

Aaa/AAA

Amount:

GBP 1,000,000,000

Settlement date:

November 23, 2020

Maturity date:

July 22, 2026

Issue price:

99.691%

Issue yield:

0.305% annual

Denomination:

GBP 1,000

Coupon:

0.250% per annum

Listing:

Luxembourg Stock Exchange

ISIN:

XS2262090009

Clearing systems:

Euroclear/Clearstream Luxembourg

Joint lead managers:

Bank of America Securities, HSBC, J.P. Morgan, and RBC Capital Markets

About the World Bank

/Public Release. This material comes from the originating organization and may be of a point-in-time nature, edited for clarity, style and length. View in full here.