World Bank Secures $6.5B in Record Sustainable Bond Deal

WASHINGTON, D.C., August 20, 2024 - The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced two Sustainable Development Bonds, raising a total of USD 6.5 billion from a USD 3 billion 2-year bond maturing in August 2026 and a USD 3.5 billion 10-year bond maturing in August 2034.

The dual-tranche transaction attracted over 300 orders totaling more than USD 22.7 billion. This represents the World Bank's largest order book to date. The dual tranche format allowed a wide and diverse set of global bond investors to participate and accommodated a range of investment strategies across both the short and longer ends of the maturity spectrum.

Barclays, BMO, Citi and HSBC are the joint lead managers for both transactions. The bonds will be listed on the Luxembourg Stock Exchange.

The 2-year tranche priced at a spread versus the reference US Treasury of +6.9 basis points, resulting in a semi-annual yield of 4.061%, and the 10-year tranche priced at a spread versus the reference US Treasury of +13.9 basis points, resulting in a semi-annual yield of 3.951%.   

"This USD dual tranche issuance is a testament to the global investment community's continuous support for the World Bank." said Jorge Familiar Vice President and Treasurer, World Bank, "The overwhelming interest for bonds in both maturities with a record-breaking order book for a World Bank transaction underscores the demand for safe and liquid investments combined with the opportunity to foster sustainable development in World Bank member countries."

Investor Breakdown by Type

Investor Breakdown by Geography

Lead Manager Quotes

"Congratulations to the World Bank team for their first Fixed Rate benchmark of the new fiscal year, with a record-setting dual-tranche USD transaction that secured strong investor demand without compromising on pricing. The deal, which generated the largest ever multi-tranche orderbook for a World Bank transaction whilst pricing at this year's tightest spread to treasuries - reaffirms the borrower's leading position in the SSA market and the continuous support from its global investor base. We are honored to have supported this new issue," said Alex Paterson, Managing Director, Head of SSA DCM, Barclays.

"World Bank has staged a spectacular return to the fixed rate benchmark market. The strategic access to both ends of the maturity spectrum has captured the attention of a massive investor set. The fine-tuned and high-quality allocation process will ensure bond placement into a global and diverse buyer base in driving the World Bank's mission to support sustainable development activities in member countries. BMO is proud to have been a partner in this transaction and extend our congratulations to the World Bank team," said Edward Mizuhara, Managing Director, Public Sector Syndicate, BMO Capital Markets.

"Citi is delighted to be part of World Bank's first fixed rate =USD benchmark of the fiscal year 2025. With this transaction, the World Bank re-opened the post-summer USD market and priced the largest USD SSA deal since April 2021. Impressive distribution to a range of high-quality investors targeting two distinct parts of the curve and capturing a diverse investor bid. Many congratulations to the World Bank funding team!" said Ebba Wexler, Head of SSA DCM, Citi.

"An excellent result for the World Bank team with the issuance of its USD 6.5 billion dual -tranche bonds today, the largest USD SSA transaction since April 2021. The transaction attracted a strong and diverse orderbook across the tranches with combined demand of over USD 22.7 billion. The result highlights the quality and global appeal of the World bank name. HSBC is delighted to have played a role in this transaction," said Asif Sherani, Head of DCM Syndicate and Head of Public Sector DCM, HSBC.

Transaction Summary

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