The World Bank (International Bank for Reconstruction and Development, IBRD) has priced a 10-year euro-denominated Sustainable Development Bond maturing in September 2036, successfully raising €3 billion (£2.5 billion).
The transaction generated strong global demand, attracting over 115 orders exceeding €6 billion in total value. The benchmark bond priced with an annual yield of 3.477 per cent, representing a spread of +25.5 basis points above the reference German Bund. Crédit Agricole, Citi, J.P. Morgan, and Goldman Sachs acted as lead managers for the transaction, with the notes set to be listed on the Luxembourg Stock Exchange.
European institutions dominated the geographic distribution, taking 81 per cent of the allocation, followed by investors in the Americas at 10 per cent and Asia at 9 per cent. By investor type, commercial banks, bank treasuries, and corporates secured 55 per cent, central banks and official institutions accounted for 29 per cent, while asset managers, insurance firms, and pension funds took the remaining 16 per cent.
Jorge Familiar, Vice-President and Treasurer of the World Bank Group, commented: “Returning to the euro market with a 10-year Sustainable Development Bond is a milestone that reflects the enduring confidence investors place in the World Bank’s mission and long-term financial strength. An order book of over EUR 6 billion speaks to investors’ recognition of the positive, lasting impact the programs these bonds support deliver for people around the world.”
Joint lead managers praised the execution and market timing of the transaction. Ebba Wexler, Head of Sovereign, Supranational and Agency (SSA) Debt Capital Markets at Citi, noted: “The World Bank team’s return to the EUR market with a new EUR 3 billion 10-year Sustainable Development Bond was a resounding success. As the first EUR-denominated 10-year SSA benchmark issued following the summer break, and IBRD’s first EUR benchmark since July 2025, the transaction was well timed and attracted outstanding investor demand.”
Benjamin Moulle, Global Head of SSA DCM at Crédit Agricole, added: “In a tense geopolitical context and highly volatile yield environment, they have been able to secure a large and well diversified orderbook, allowing a solid new EUR 3 billion 10-year with very limited concession.”
Dorothee Amar, Managing Director and Co-Head of SSA at Goldman Sachs, stated: “Goldman Sachs is thrilled to have been a part of the World Bank’s first EUR transaction in their new fiscal year, aiding them in their global mission to finance sustainable development.” Sarah Lovedee, Head of Supranational DCM at J.P. Morgan, said: “The World Bank has once again demonstrated its strong standing within the EUR SSA market, successfully launching a new EUR 3 billion Sustainable Development Bond and establishing a new liquid 10-year point on its EUR curve.”
