World Bank Secures €2.5B for Global Sustainable Development

WASHINGTON, D.C., August 20, 2024 - The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced a EUR 2.5 billion 7-year euro-denominated benchmark bond maturing in August 2031.

The transaction attracted over 75 orders totaling almost EUR 4 billion, from European and global investors seeking safe and liquid investment opportunities that have a positive impact on sustainable development.

BofA Securities, Deutsche Bank, Goldman Sachs International and Natixis are the joint lead managers for the transaction. The bond will be listed on the Luxembourg Stock Exchange.

The bond priced with a final spread to euro mid-swaps of +16 basis points and an equivalent annual yield of 2.604%. This equates to a spread vs. the reference Bund of +50.6 basis points.

"Our first euro-denominated deal of fiscal year 2025 has generated very strong demand from investors across the globe," said Jorge Familiar, Vice President and Treasurer, World Bank. "With this successful issuance, we are raising EUR 2.5 billion towards impactful projects that align with our goals of reducing poverty and fostering shared prosperity on a livable planet."

Investor Breakdown by Type

Investor Breakdown by Geography

Lead Manager Quotes

"Congratulations to the World Bank team on an impressive return to the EUR market and a strong start to the new funding year. The EUR 2.5 billion 7-year transaction is a testament to the World Bank's strong position in European markets and unwavering support from investors. The quality and diversity of the orderbook highlights investor commitment to World Bank's sustainable development activities. We are delighted to have been involved in this transaction.". said Kamini Sumra, Managing Director SSA Origination, BofA Securities.

"With today's transaction, the World Bank has successfully complemented its Euro curve by a new liquid line in the 7-year space. This new bond attracted a very high-quality, broad-based and diverse order book. The fact that it was able to achieve this result demonstrates the high regard that Euro investors hold for the World Bank name and the importance of its development mission. Congratulations to the World Bank team," said Katrin Wehle, Managing Director, Head of SSA DCM, Deutsche Bank.

"The World Bank continues to be a strategic issuer in the EUR market, having successfully issued a new EUR 2.5 billion benchmark in the 7-year tenor and achieving a final orderbook of approximately EUR 4 billion, demonstrating the strength of its investor base across international markets with large and diverse high-quality demand, especially from central banks andofficial institutions. Goldman Sachs is proud to be a part of World Bank's first EUR transaction in the new fiscal year and helping them with financing their global sustainable missions." said Dorothee Amar, Co-head of SSA, Goldman Sachs.

"The success of this transaction not only marks the re-opening of the Euro primary market after the summer, but the first trade in this strategic currency by the World Bank for the new fiscal year 2025. Despite a more volatile and uncertain backdrop for new issuances, the World Bank once again reinforced its capabilities to achieve an outstanding trade that supports its ever-important sustainable development mission. Today's trade met the key pocket of interest by European investors resulting in a notable composition of high-quality accounts. As the World Bank continues to add liquid points to the Euro curve, the decision to return to the 7-year tenor for the first time since 2020 solidifies the demand for this highly sought after institution." said Thomas Leocadio, Co-Head Public Sector DCM, Natixis.

Transaction Summary

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