The World Bank 10-year euro-denominated Sustainable Development Bond, maturing in January 2035. The issuance attracted over 120 orders, totalling €6 billion, highlighting strong global investor demand for sustainable finance instruments.
Priced at a final spread of +47 basis points over euro mid-swaps, with an annual yield of 2.975%, the bond equates to a spread of +46 basis points against the reference German Bund. The issuance will be listed on the Luxembourg Stock Exchange, with BNP Paribas, Citi, Deutsche Bank, and Natixis serving as lead managers.
Jorge Familiar, Vice President and Treasurer of the World Bank said, “This €3 billion benchmark reflects continued investor interest in sustainable finance. The transactions this week have raised nearly USD 12 billion, underscoring strong support for development-focused initiatives.”
Salma Guerich of BNP Paribas said, “This transaction demonstrates strong demand from global investors for sustainable development bonds.”
“In a very busy primary market, this new issue achieved not only the World Bank’s largest EUR orderbook of over EUR 6 billion but also its joint largest EUR transaction size, raising EUR 3 billion of new Sustainable Development Bonds. Both these metrics reflect the strong and ever-growing support from investors around the globe for the World Bank’s credit and mission,” said Ebba Wexler, Head of Global Sovereign, Supranational and Agency (SSA) DCM, Citi.
“With over 120 investors participating, this trade showcased IBRD’s robust credit quality and commitment to sustainable development, reaffirming its leadership in the SSA space,” said Katrin Wehle, Head of SSA DCM, Deutsche Bank.
“With this successful EUR transaction, the World Bank has once again demonstrated its commitment to this strategic currency, securing the largest order book in its history. This achievement reflects the strong confidence investors place in the World Bank’s mission and financial stability,” said Thomas Leocadio, Co-Head, Public Sector DCM, Natixis.
The issuance not only strengthens the World Bank’s euro-denominated bond portfolio but also highlights the increasing role of ESG-focused investments in fixed-income markets.
