World Bank raises GBP 1.5 billion in 5-year sustainable development bond
The International Bank for Reconstruction and Development (IBRD), representing the World Bank, has successfully priced a 5-year bond in Great British Pound sterling (GBP) set to mature in October 2028. The Sustainable Development Bond aims to raise GBP 1.5 billion from investors, contributing to financing sustainable development initiatives in World Bank member countries.
Featuring an annual coupon of 3.875 percent and an annual yield of 3.889 percent, the bond was priced at +31 basis points over the 1.625 percent UK Gilt due October 2028. Citigroup, NatWest Markets, Santander, and TD Securities serve as joint lead managers for the transaction, and post-issuance, the bond will be listed on the Luxembourg Stock Exchange.
Jorge Familiar, Vice President and Treasurer of the World Bank, expressed satisfaction with the strong start to the new year. Familiar emphasized the diverse range of currencies and tenors in bonds supporting the World Bank’s sustainable development mandate.
He stated, “We are pleased to start the new year off strong, offering the market an array of currencies and tenors in bonds that finance the World Bank’s sustainable development mandate. This transaction marks the largest sterling benchmark bond for Supranational Sovereign and Agency (SSA) issuers since the World Bank’s issuance in January 2022.”
Ebba Wexler, Managing Director and Global Head of SSA Debt Capital Markets at Citigroup, commended the World Bank’s commitment to the sterling market and the appeal of the institution to sterling fixed-income investors. Wexler said, “Citi is delighted to have acted as book-runner on the World Bank’s first sterling benchmark of the calendar year.
The GBP 1.5 billion benchmark issue size confirms the World Bank’s commitment to the sterling market and provides investors with large, liquid benchmark transactions. A stellar outcome reflecting the ongoing appeal of the World Bank to sterling fixed-income investors.”
NatWest Markets, as a joint lead manager, expressed pride in supporting the World Bank’s sustainable development activities. Damien Carde, Managing Director and Head of FBG DCM at NatWest Markets, emphasized the World Bank’s success in the capital markets and its impactful engagement in sustainable development.
Carde stated, “The World Bank’s most difficult competition comes only from their own prior success. This is demonstrated through today’s 1.5 billion sterling transaction which represents the largest print in the SSA space since World Bank’s own issuance in January 2022. This issuance supports the World Bank’s sustainable development activities, and NatWest is proud to have been involved.”
Conor Hennebry, Global Head of Corporate Debt at Santander, applauded the robust demand and long-standing support from the GBP investor base for the World Bank and its sustainable development mandate. Hennebry highlighted Santander’s delight in supporting the World Bank on their sterling bond issue. He said, “We are delighted to support the World Bank on their sterling bond issue today. This syndication is a clear demonstration of the robust demand and long-standing support from the GBP investor base for the World Bank and its sustainable development mandate.”
TD Securities, another joint lead manager, praised the World Bank’s exceptional standing in global capital markets. Laura O’Connor, Managing Director of Fixed Income Origination and syndication at TD Securities, highlighted the World Bank’s impressive results across various currencies during a busy week for the broader SSA market.
O’Connor stated, “The World Bank continues to prove its exceptional standing in global capital markets with today’s GBP 1.5 billion transaction, marking the fourth currency accessed in benchmark format by the World Bank this week alone. Despite a busy pipeline from the broader SSA market, the World Bank’s impressive results across currencies are a testament to the support from the global investor community.”
(With input from ANI)
