World Bank launches $ 4 bn sustainable development bond

13 / 07 / 2022

By Marwa Nassar - -

The World Bank inaugurated the five-year Sustainable Development Bond at $ 4 billion – that matures in June 2027 – to support the bank’s mission to combat poverty and boost shared prosperity in developing countries.

The transaction, executed in a period of heightened market volatility, attracted 100 orders totaling more than $ 5.6 billion by appealing to investors seeking high credit quality and a sustainable investment. The globally diverse investors included central banks, bank treasuries and asset managers, among other groups, and also included several first-time investors.

Citi, Nomura, TD Securities and Wells Fargo are the lead managers. The bonds will be listed on the Luxembourg Stock Exchange, offers a spread versus the reference US Treasury of +15.5 basis points and has a semi-annual yield of 3.137%.

“Multiple, overlapping global shocks are creating deep direct human and economic impacts and creating adverse spillovers in developing countries, threatening to reverse decades of development gains,” said Jorge Familiar Vice President and Treasurer, World Bank. “We are thankful for the investors in today’s US dollar benchmark bond, who through their partnership are helping us support a sustainable response to these challenges.”

“We congratulate the World Bank for demonstrating market leadership amidst a volatile market backdrop. The 5-year maturity fitted investor demand perfectly and resulted in broad support from the full global reach of the World Bank investor base that recognizes the safe-haven status of the World Bank name. This USD Sustainable Development Bond benchmark is a superb start to the new fiscal year for the World Bank and comes at a critical time for the economies of developing countries. Congratulations to the World Bank treasury team,” said Laura O’Connor, Managing Director, Fixed Income Origination & Syndication, TD Securities.