World Bank launches USD 5 B 7-year sustainable development bond with record investor demand

New Delhi [India], January 4 : The World Bank, operating through the International Bank for Reconstruction and Development (IBRD), successfully priced a 7-year benchmark bond maturing in January 2031.
According to the World Bank, the Sustainable Development Bond garnered an impressive USD 5 billion from investors keen on supporting the World Bank's mission to eradicate extreme poverty and enhance global prosperity sustainably.
This transaction marks the first in the Sovereign, Supranational, and Agency (SSA) market in US dollars for 2024, setting records with the largest order book for a World Bank 7-year bond. Bank treasuries led the charge, followed by official institutions and asset managers.
Investors were attracted not only by the World Bank's triple-A credit rating but also by the bond's focus on sustainable development, ensuring a positive social and environmental impact in member countries.
Barclays Bank PLC, BMO Capital Markets, BNP Paribas, and Citigroup Global Markets played crucial roles as lead managers for this substantial issuance. The investor breakdown reflects a robust interest across various sectors- Banks/bank treasuries/corporates- 49 per cent, central Banks/official Institutions- 35 per cent, asset managers/insurance/pension funds- 16 per cent.
Geographically, the interest was distributed as Europe / Middle East/ Africa (EMEA)- 56 per cent, Americas- 26 per cent, and Asia- 18 per cent.
"Congratulations to the World Bank team for opening the USD SSA market in 2024 with a record-breaking 7-year transaction, gathering the second largest order book ever for IBRD and their largest in this tenor. The deal once again affirms the incredible global support from the investor base for the World Bank's development mission. It is a privilege for Barclays to have assisted the World Bank team on this landmark transaction," said Alex Paterson, Managing Director, Head of SSA DCM, Barclays.
"Congratulations to the World Bank on an outstanding reopening of primary markets that will jumpstart 2024 USD SSA supply. The 7-year SDB achieved tremendous global investor reception with orders in excess of USD 11 billion, paving the way for a very high-quality USD 5 billion deal size. BMO was thrilled to partner with the World Bank on this fantastic execution," said Sean Hayes, Head of US Syndicate, BMO Capital Markets.
"A superb start to 2024 for the World Bank printing USD 5 billion. With final books of US 11 billion, the bold decision to open the SSA USD market in 2024 with a longer-dated transaction has been rewarded and set an impressive early benchmark for supranational issuance in the new year," said Jamie Stirling, Global Head of SSA DCM, BNP Paribas.
"Congratulations to the World Bank on opening the USD SSA market in 2024 with a new 7-year Sustainable Development Bond. The transaction saw demand from over 160 investors, with IBRD again setting the tone and momentum for the SSA sector in the new year. Citi was delighted to be a bookrunner on the transaction," said Ebba Wexler, Head of Global Sovereign, Supranational and Agency (SSA) DCM, Citi.
This successful issuance not only reaffirms the World Bank's dedication to sustainable development but also underscores the resolute global backing for its mission to address critical challenges and promote positive change in member countries.