New Delhi: The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) priced a new SEK benchmark due December 23, 2022, raising SEK 11.5 billion (USD eq. 1.15 billion). World Bank bonds support the financing of a range of sustainable development projects and programs in member countries, including health.
This issuance is part of the World Bank’s effort to raise awareness about the institution’s health program, particularly how the World Bank is working with member countries to support their efforts to prevent, detect, and respond to the rapid spread of COVID-19.
The bond, which is the largest priced by any sovereign, supranational, and agency (SSA) issuer to date in SEK, attracted investors from Scandinavia and elsewhere in Europe with asset managers, pension funds, and insurance funds representing 91.3% of investors. The remainder was made up by banks, bank treasuries, and corporates (6.1%) and central bank and official institutions (2.6%). The bond offers an annual coupon of 0.250% and a semi-annual yield of 0.259%.
Skandinaviska Enskilda Banken (SEB) was the sole lead manager for this transaction.
“We are very happy to see the continued, strong support of investors globally for the World Bank’s development initiatives, including our response to COVID-19. We appreciate the steadfast support of Scandinavian investors for the World Bank’s sustainable development mission and particularly at a time when we are mobilizing financing to help member countries strengthen health systems and support their economies,” said Jingdong Hua, Vice President and Treasurer, World Bank.
Transaction Summary
| Issuer: | World Bank (International Bank for Reconstruction and Development, IBRD) |
| Issuer rating: | Aaa /AAA (Moody’s/S&P) |
| Amount: | SEK 11.5 billion |
| Settlement date: | April 23, 2020 |
| Maturity date: | December 23, 2022 |
| Issue price: | 99.976% |
| Issue yield: | 0.259% semi-annual |
| Denomination: | SEK 10,000 |
| Coupon: | 0.250% per annum |
| Listing: | Luxembourg Stock Exchange |
| ISIN: | XS2160873480 |
| Clearing system: | Euroclear/Clearstream |
| Lead manager: | Skandinaviska Enskilda Banken |
With annual issuances between US$55-US$65 billion, World Bank bonds support the financing of programs that further the Sustainable Development Goals. World Bank bonds are aligned with the sustainability bond guidelines published by the International Capital Markets Association (ICMA). The World Bank is also a member of the Executive Committee of the Green Bond and Social Bond Principles. A key priority for the World Bank’s capital markets’ engagement is building strategic partnerships with investors to promote the importance of private sector financing in sustainable development.
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