World Bank Issues €3B 10-Year Green Bond

WASHINGTON, D.C., January 9, 2024 - The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced a 10-year euro-denominated benchmark bond maturing in January 2035, raising EUR 3 billion.

The transaction attracted over 120 orders totaling over EUR 6 billion, appealing to investors across Europe and in Asia. The bond priced with a final spread to euro mid-swaps of +47 basis points and an equivalent annual yield of 2.975%. This equates to a spread vs. the reference Bund of +46 basis points.

BNP Paribas, Citi, Deutsche Bank, and Natixis are the lead managers for the transaction. The bond will be listed on the Luxembourg Stock Exchange.

"This EUR 3 billion benchmark caps off a tremendous week welcoming the new year with benchmark transactions across five markets and currencies. The resulting total for the week of nearly USDeq. 12 billion mobilized from the capital markets shows the strength of the World Bank's position in the markets based on support from global investors seeking high quality, liquid investments to finance sustainable development," said Jorge Familiar, Vice President and Treasurer, World Bank.

Investor Breakdown

Lead Manager Quotes

"Congratulations to the World Bank on their return to the EUR market in the 10-year tenor, following the successful USD 6 billion 7-year trade earlier in the week. This is a testament to the robust support from their global investor base, as highlighted by a diverse orderbook with top-notch quality. BNP Paribas is honored to have supported the World Bank with this trade," said Salma Guerich, SSA DCM, BNP Paribas.

"Congratulations to the World Bank on another landmark transaction. In a very busy primary market, this new issue achieved not only the World Bank's largest EUR orderbook of over EUR 6 billion but also its joint largest EUR transaction size, raising EUR 3 billion of new Sustainable Development Bonds. Both these metrics reflect the strong and ever-growing support from investors around the globe for the World Bank's credit and mission. We are delighted to have been involved," said Ebba Wexler, Head of Global Sovereign, Supranational and Agency (SSA) DCM, Citi.

"The World Bank has once again highlighted its strong market position and broad appeal among EUR global fixed-income investors with a successful 10-year EUR Sustainable Development Bond. With over 120 investors participating, this trade showcased IBRD's robust credit quality and commitment to sustainable development, reaffirming its leadership in the SSA space. We are proud to have supported the World Bank in this transaction," said Katrin Wehle, Head of SSA DCM, Deutsche Bank.

"With this successful EUR transaction, the World Bank has once again demonstrated its commitment to this strategic currency, securing the largest order book in its history. This achievement reflects the strong confidence investors place in the World Bank's mission and financial stability. Today's deal garnered enthusiastic interest from over 120 European and global investors, resulting in an impressive demand of EUR 6 billion. The exceptional quality of the order book, especially during such a busy week filled with numerous primary deals, underscores the World Bank's appeal in the market. This remarkable accomplishment not only strengthens the World Bank's established and liquid curve but also highlights the continued confidence in its name from high-quality accounts. Natixis is proud to have partnered with the World Bank on this transaction," said Thomas Leocadio, Co-Head, Public Sector DCM, Natixis.

Transaction Summary

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