The World Bank has priced a $4bn seven-year benchmark Sustainable Development Bond maturing in August 2033. Issued by the International Bank for Reconstruction and Development, the transaction attracted over $11bn in orders from more than 150 international investors, driven primarily by central banks, official institutions, and bank treasuries.
Lead-managed by Bank of America, Morgan Stanley, Nomura, and TD Securities, the bond pays a semi-annual coupon of 4.50 per cent and offers a spread of 3.9 basis points above reference US Treasuries. It will be listed on the Luxembourg Stock Exchange.
Commenting on the transaction, Jorge Familiar, Vice President and Treasurer at the World Bank Group, stated that the seven-year bond demonstrated the confidence high-quality investors placed in the World Bank’s mission and its ability to mobilise capital for sustainable development. He added that the quality of the order book reflected investor recognition of the bank’s financial strength and the positive impact of supported programmes.
The distribution of the order book reflected a broad and geographically diverse investor base. By category, banks, bank treasuries, and corporates secured the largest allocation at 43 per cent, followed by central banks and official institutions at 30 per cent, and asset managers, insurance companies, and pension funds at 27 per cent.
Geographically, investors from Europe, the Middle East, and Africa accounted for 42 per cent of the placement, while the Americas represented 38 per cent and Asian investors took 20 per cent.
Joint lead managers praised the execution and timing of the transaction. Kamini Sumra, Managing Director at BofA Securities, congratulated the World Bank on its return to the dollar market and its first US dollar benchmark of the new fiscal year, noting that the $4bn issue was met with strong investor demand that highlighted the enduring strength of the World Bank’s global investor relationships.
Ben Adubi, Head of SSA at Morgan Stanley, noted that the World Bank demonstrated its market strength with a high-quality, diversified order book that grew throughout the transaction, reflecting the issuer’s standing within the investment community.
Spencer Dove, Managing Director and Head of SSA Debt Capital Markets at Nomura, remarked that the World Bank had once again demonstrated true market leadership in reopening post-summer capital markets. Paul Eustace, Global Head of SSA at TD Securities, added that the transaction—the bank’s second fixed-rate US dollar offering of 2026—highlighted the continued global appeal of the World Bank name, particularly for duration tenors.
