Washington: The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced two Sustainable Development Bonds – a USD 3 billion 2-year bond maturing in April 2023 and a USD 5 billion 7-year bond maturing in April 2028. The transactions provided options for a wide variety of investors seeking short-term and medium-term investment opportunities in the Supranational, Sovereign and Agency (SSA) market, where supply for 2- and 7-year maturities is limited.
The transactions, which attracted over 250 orders with the order book reaching USD 14 billion across both tranches, appealed to a broad and globally diverse group of investors seeking high credit quality alongside sustainable investment. There was strong demand from central banks and official institutions, banks and bank treasuries, as well as, pension funds, insurance companies and asset managers.
Barclays, BMO Capital Markets, TD Securities, and Wells Fargo Securities are the lead managers for both transactions. The bonds will be listed on the Luxembourg Stock Exchange.
The 2-year tranche priced at a semi-annual yield of 0.229%. This equates to a spread vs. the reference US treasury of +6.98 basis points. The 7-year tranche priced at a semi-annual yield of 1.377%. This equates to a spread vs. the reference US treasury of +8.88 basis points.
“World Bank funding in the capital markets continues to support our member countries’ efforts to implement a green, resilient and inclusive recovery to the coronavirus pandemic,” said Jingdong Hua, Vice President and Treasurer, World Bank. “Investors have a critical role to play in channeling resources to sustainable development, particularly now. We are pleased to be able to meet investors’ demand and delighted with the broad participation across both tenures while providing additional liquidity to the USD curve. We thank investors for their steadfast support.”