World Bank's $6B 7-Year Bond Hits Record Demand

WASHINGTON, D.C., January 7, 2025 - The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced a 7-year benchmark bond that matures in January 2032. The Sustainable Development Bond raised USD 6 billion from investors seeking a high-quality liquid investment that supports the World Bank's work to end extreme poverty and boost prosperity on a livable planet.

With more than 180 investor orders, the transaction attracted the highest demand for any World Bank bond, primarily driven by bank treasuries, central banks, official institutions, and asset managers. The appeal was largely due to the strong credit quality, high level of liquidity, and use of proceeds for sustainable development.

The lead managers are BNP Paribas, J.P. Morgan Securities, The Bank of Nova Scotia, and Wells Fargo Securities, LLC. The bond will be listed on the Luxembourg Stock Exchange, pays a semi-annual coupon of 4.625%, offers a spread of 15.5 basis points versus the reference US Treasury, with a semi-annual yield of 4.710%.

"We are excited to start the new year with record-breaking investor demand of USD 12.6 billion for this 7-year bond, our largest ever benchmark in this maturity," said Jorge Familiar, Vice President and Treasurer, World Bank. "This transaction shows once again how the World Bank mobilizes finance from the international capital markets for its projects and programs around the world that work to end poverty on a livable planet."

Investor Breakdown by Type

Investor Breakdown by Geography

Lead Manager Quotes

"BNP Paribas congratulates the World Bank on a strong start to 2025 with the largest-ever 7-year USD Sovereign, Supranational and Agency (SSA) trade to date, a testament to the issuer's strong investor following. We were delighted to be part of this transaction," said Salma Guerich, DCM SSA BNP Paribas.

"Congratulations to the World Bank on its successful return to the US dollar benchmark market with a USD 6 billion 7-year Sustainable Development Bond. Order books of over USD 12.6 billion also represents World Bank's largest-ever for a single tranche transaction, highlights the World Bank's persistent attractiveness among global investors. JP Morgan is proud to have supported the World Bank in this transaction," said Sarah Lovedee, Head of Supranational DCM, J.P. Morgan.

"Scotiabank congratulates the World Bank on its first US dollar-denominated transaction of 2025: a highly successful Sustainable Development Bond and the largest 7-year SSA transaction issued in the US dollar market. The size and quality of the orderbook are a testament to investor demand for the World Bank name, strategic issuance timing, and thoughtful pricing decisions during the book-build process. Scotiabank is pleased to be involved on such an important issuance," said Cesare Roselli, Global Head of SSA Origination at Scotiabank.

"Congratulations to the World Bank team on this remarkable USD 6 billion 7-year benchmark transaction - the largest 7-year SSA benchmark which was supported by the World Bank's largest ever orderbook, exceeding $12.6 billion. Executing such a successful transaction during an exceptionally busy first week of the year is a testament to the World Bank's unparalleled reputation and ability to consistently attract a deep and diverse global investor base. Wells Fargo is proud to have partnered with on this landmark achievement," said Carlos Perezgrovas, Head SSA Origination, Wells Fargo Securities.

Transaction Summary

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