The World Bank has priced a $4 billion seven-year Sustainable Development Bond, attracting more than $11 billion in high-quality investor orders.
The bond, which was issued by the International Bank for Reconstruction and Development (IBRD), matures in August 2033 and carries a 4.50% annual coupon, payable semi-annually.
The issue price was 99.668%, with an issue yield of 4.556% and a spread of 3.9 basis points against the reference US Treasury. It will be listed on the Luxembourg Stock Exchange.
Mobilise capital
“This seven-year Sustainable Development Bond demonstrates the confidence that high-quality investors place in the World Bank’s mission and its ability to mobilise capital for sustainable development,” commented Jorge Familiar, vice president and treasurer, World Bank Group. “The quality of the orderbook reflects investors’ recognition of the World Bank’s financial strength and the positive impact of the programs these bonds support.”
The bond attracted more than 150 investor orders, primarily driven by bank treasuries, central banks and official institutions, and asset managers.
“The USD 4 billion print was met with strong investor demand, highlighting the enduring strength of the World Bank’s relationship with its global investor base and the market’s continued support for its sustainable development mandate,” added Kamini Sumra, managing director, BofA Securities.
Investor breakdown
Banks, bank treasuries and corporates accounted for more than two fifths (43%) of investors, followed by central banks and official institutions (30%), and asset managers, insurers and pension funds (27%).
On a geographical basis, meanwhile, investors from Europe, the Middle East and Africa (EMEA) accounted for 42% of orders, while the Americas represented 38% and Asia 20%.
Elsewhere, Ben Adubi, head of sovereign, supranational and agency (SSA) at Morgan Stanley, said that with the seven-year bond, the World Bank has “demonstrated its strength with a high-quality diversified orderbook with strong demand from the outset that kept growing throughout the transaction. The deal is a true reflection of the issuer’s standing amongst the investor community”.
The transaction represents the World Bank’s second fixed-rate US dollar offering of 2026. Read more here.
