- World Bank raises $6.5B through dual-tranche bonds with a record $22.7B order book.
- Investors from around the globe, including central banks and asset managers, drive unprecedented demand.
- The bonds highlight strong support for sustainable development initiatives worldwide.
The World Bank (IBRD, Aaa/AAA) successfully raised $6.5 billion through a dual-tranche Sustainable Development Bond issuance, marking its largest order book to date. The offering included a $3 billion 2-year bond maturing in August 2026 and a $3.5 billion 10-year bond maturing in August 2034. The bonds attracted over 300 orders totaling more than $22.7 billion, reflecting strong global demand for safe, liquid investments that support sustainable development.
Jorge Familiar, Vice President and Treasurer at the World Bank, emphasized the significance of this achievement: “This USD dual tranche issuance is a testament to the global investment community’s continuous support for the World Bank. The overwhelming interest for bonds in both maturities with a record-breaking order book for a World Bank transaction underscores the demand for safe and liquid investments combined with the opportunity to foster sustainable development in World Bank member countries.”
Investor Breakdown:
- The 2-year bond saw 75% of investments from central banks/official institutions, with strong participation from EMEA (44%), Americas (28%), and Asia (28%).
- The 10-year bond was more diversified, attracting 43% from central banks/official institutions and 26% from asset managers/insurance/pension funds, with EMEA leading the geographic distribution at 55%.
Alex Paterson, Managing Director, Head of SSA DCM at Barclays, noted, “The deal, which generated the largest ever multi-tranche orderbook for a World Bank transaction whilst pricing at this year’s tightest spread to treasuries, reaffirms the borrower’s leading position in the SSA market and the continuous support from its global investor base.”
The bonds, priced at competitive spreads over US Treasuries (+6.9 bps for the 2-year and +13.9 bps for the 10-year), will be listed on the Luxembourg Stock Exchange.
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Edward Mizuhara, Managing Director, Public Sector Syndicate at BMO Capital Markets, highlighted the strategic importance: “The fine-tuned and high-quality allocation process will ensure bond placement into a global and diverse buyer base, driving the World Bank’s mission to support sustainable development activities in member countries.”
This record-breaking transaction underscores the World Bank’s continued leadership in the sustainable bond market, drawing robust support from a diverse, global investor base. The successful issuance not only reflects confidence in the World Bank’s credit but also highlights the increasing investor appetite for sustainable investments.