The FINANCIAL — The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) priced a global benchmark USD 6 billion Sustainable Development Bond maturing on October 28, 2025.
Very strong demand from global investors for the USD benchmark led to an orderbook of over USD 9 billion, with nearly 180 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 0.500% per annum and has an issue price of 99.887% and a final spread of 17.7 basis points over the 0.25% US Treasury September 2025 reference bond, offering investors a yield of 0.523%. Joint lead managers for this transaction are Barclays, Deutsche Bank, Morgan Stanley and RBC Capital Markets.
“This is a terrific result; the level of investor demand with our second-largest ever orderbook, reflects the strong support for the World Bank and its sustainable development mandate. This benchmark, and all of our Sustainable Development Bonds, help us serve our member countries, including efforts to respond to the health, social, and economic impacts of COVID-19 and work toward a sustainable and inclusive recovery,” said Jingdong Hua, Vice President and Treasurer, World Bank.
“In this challenging year it has been an honor to partner with the World Bank as they play an increasingly crucial role in helping economies respond to the coronavirus crisis. With a high quality orderbook of over USD 9 billion, investors have once again demonstrated their strong demand for the World Bank which delivered an incredibly successful USD 6 billion Sustainable Development Bond. As always, it is a privilege for Barclays to have worked on this spectacular transaction with the World Bank,” said Lee Cumbes, Head of Public Sector EMEA, Barclays.
“The World Bank has successfully launched its seventh USD benchmark in 2020, reaching an impressive size of USD 6 billion. Once again, the World Bank benefited from strong support from its investors which underscores its importance to the USD market. The quality of the orderbook was superb and illustrated the enviable position that the World Bank commands with leading central banks and real money investors across the globe. We are honored to have the occasion to work alongside the World Bank team yet again as they lead by example in the Sovereign, Supranational and Agency (SSA) market,” said Achim Linsenmaier, Managing Director, Global Head of DCM Public Sector Origination, Deutsche Bank.
“Another strong outcome for the World Bank, capitalizing on a calm period in the market, issuing the second largest SSA USD benchmark in 2020, only behind their own 5-year benchmark printed earlier in April this year. The large deal size is supported by a high quality orderbook amounting to over USD 9 billion, with almost 180 accounts participating, yet another testament to the appeal of the World Bank’s credit. Morgan Stanley is very proud to have been involved,” said Ben Adubi, Head of SSA Syndicate at Morgan Stanley.
“The World Bank’s very successful return to the USD market demonstrates a market leading access to liquidity that has once again reinforced its status as the benchmark USD issuer in the SSA market. The combination of credit quality, liquidity, and an opportunity to support sustainable development remain the World Bank’s most effective calling cards,” said Jigme Shingsar, Managing Director, RBC Capital Markets.