World Bank prices 5-year sustainable development bond

08 / 01 / 2020

By Marwa Nassar - -

The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) priced a 5-year global Sustainable Development Bond that raised CAD1.5 billion from institutional investors around the globe. BMO Capital Markets, RBC Capital Markets, Scotiabank, and TD Securities were joint lead managers for this transaction.

World Bank bonds support the financing of sustainable development projects and programs in member countries. The World Bank engages investors around specific development challenges and the Sustainable Development Goals (SDGs), including, in this case, SDG 6 (clean water and sanitation), and SDG 14 (life below water).

As the largest multilateral funder for ocean and water projects in developing countries, the World Bank is committed to working with countries to ensure access to safe and clean water and for the sustainable use of ocean and marine resources. This includes avoiding pollution reaching oceans through better waste management.

Jingdong Hua, World Bank Vice President and Treasurer, said: “This is a great way to start the World Bank’s 2020 benchmark program. We are very pleased with the strong investor demand for the first World Bank benchmark bond of the new decade, and the continued support from investors for the World Bank’s development mandate. Investors are increasingly recognizing the essential role they can play in achieving the Sustainable Development Goals – including preserving freshwater and marine ecosystems.”

Sean Hayes, Managing Director and Head of US Syndicate at BMO Capital Markets,said: “World Bank rings in 2020 as the first borrower of the new decade to re-open Canadian Dollar primary markets, with bonds highlighting the World Bank’s commitment to sustainable development. Domestic buyers drove early momentum, with overseas investors quick to join the party, leading to a match of the World Bank’s largest ever CAD offering at CAD1.5 billion size. Investment for impact was on showcase, in support of the World Bank mission and its leadership role in pioneering sustainable debt capital markets.”

Jigme Shingsar, Managing Director – Debt Capital Markets at RBC Capital Markets,said: “World Bank’s triumphant re-opening of the CAD SSA market supports the theme of Canada becoming an ever more important market for global borrowers. The size of the transaction matches the World Bank’s previous record while the growing domestic demand highlights both the appeal of supporting SDGs as well as the exponential growth of the Canadian SRI market.”

Cesare Roselli, Global Head of SSA (Sovereign, Supranational, and Agency) Origination at Scotiabank, said: “Scotiabank was proud to support the World Bank CAD1.5 billion benchmark issue. The World Bank has an unparalleled track-record as an issuer able to meet the growing needs for highly rated assets that support the SDGs, and accordingly this transaction was well received by the growing Canadian ESG investment community.”

Paul Eustace, Managing Director, Head of EMEA Syndicate at TD Securities,said: “World Bank has a long-standing commitment to the Canadian dollar market. This newest Sustainable Development Bond raises awareness of the issuer’s work in the areas of clean water and sanitation as well as conserving life below water. The response from investors was predictably strong. This benchmark is a fantastic way for the World Bank to kick off a brand new decade of funding.”