World Bank Launches FY 2025 with £750M 7-Year Bond

Washington, D.C., July 10, 2024 - The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) priced a 7-year British pound sterling (GBP) benchmark bond due July 2031. The GBP 750 million Sustainable Development Bond (SDB) attracted investors interested in a safe and liquid product as well as providing support to the World Bank and its efforts to help countries to find solutions to their development efforts.

The bond offers an annual coupon of 4.125% and an annual yield of 4.181%. It was priced at +19.6 basis points over the 0.25% UK Gilt due July 2031. BofA Securities, Barclays Bank PLC, Citigroup Global Markets Limited and RBC Europe Limited are joint lead managers for the transaction. The bond will be listed on the Luxembourg Stock Exchange.

"This benchmark transaction jumpstarts what we expect to be a dynamic and productive fiscal year funding program for IBRD" said Jorge Familiar, Vice President and Treasurer, World Bank. "We appreciate the strong support from sterling investors and look forward to a year with a variety of offerings in currencies and tenors, all to be used to finance the World Bank's sustainable development activities."

Investor Distribution

"Congratulations to the World Bank team for their first public transaction of the new fiscal year with a landmark 7-year GBP transaction, securing the tightest spread to Gilts for a fixed rate Sovereign, Supranational and Agency (SSA) benchmark in this tenor in more than a decade. Achieving such a strong result reconfirms the World Bank's leadership in the SSA market as well as the longstanding support from the global investor base. It is once again a privilege for Barclays to have assisted the World Bank team in this market," said Alex Paterson, Managing Director, Head of SSA DCM, Barclays.

"A GBP 750 million transaction in the 7-year maturity reconfirms the strong and consistent support the issuer receives for its sustainable development purpose from the sterling investor base. The 7-year tenor complements IBRD's sterling curve nicely and achieved robust demand from the UK bank treasury and real money community. BofA Securities is delighted to have supported the World Bank with this transaction," said Kamini Sumra, Managing Director, SSA Origination, BofA Securities.

"Many congratulations to the World Bank team for a successful new 7-year benchmark, the first in this tenor since September 2023. The transaction saw a broad range of investors participate, again evidencing the World Bank's standing among the UK and international investor community. Citi was delighted to be involved in this great outcome," said Ebba Wexler, Head of SSA Debt Capital Markets, Citi.

"The World Bank's return to the GBP market was an important demonstration of the continued liquidity and depth of the market. Doing so with a GBP 750 million 7-year SDB benchmark - the largest GBP benchmark since April - is a testament to the World Bank's investor outreach as well as the track record of success that gives the market comfort. Congratulating the World Bank for reopening markets never gets old," said Jigme Shingsar, Managing Director, SSA DCM, RBC.

Transaction Summary

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