<\/p>\n
The bond, issued by the International Bank for Reconstruction and Development, matures in August 2033 and drew more than $11 billion in orders from over 150 investors worldwide.<\/p>\n
<\/p>\n
Investor demand was led primarily by bank treasuries, central banks, official institutions and asset managers.<\/p>\n
<\/p>\n
World Bank Vice President and Treasurer Jorge Familiar said the transaction reflects investor confidence in the institution’s financial strength and development mandate. “This seven-year Sustainable Development Bond demonstrates the confidence that high-quality investors place in the World Bank’s mission and its ability to mobilise capital for sustainable development,” Familiar said.<\/p>\n
<\/p>\n
“The quality of the orderbook reflects investors’ recognition of the World Bank’s financial strength and the positive impact of the programmes these bonds support.”<\/p>\n
<\/p>\n
The bond carries a semi-annual coupon of 4.50% and was priced at a spread of 3.9 basis points above the equivalent United States Treasury benchmark. The security will be listed on the Luxembourg Stock Exchange.<\/p>\n
<\/p>\n
According to the World Bank, banks, bank treasuries and corporate investors accounted for 43% of allocations, followed by central banks and official institutions at 30%. At the same time, asset managers, insurers, and pension funds accounted for 27%.<\/p>\n
<\/p>\n
By region, investors from Europe, the Middle East and Africa accounted for 42% of demand, followed by the Americas at 38% and Asia at 20%. The transaction was managed by Bank of America, Morgan Stanley, Nomura and TD Securities.<\/p>\n
<\/p>\n
Bank of America Managing Director Kamini Sumra said the strong response highlighted continued investor support for the World Bank. “The $4 billion print was met with strong investor demand, highlighting the enduring strength of the World Bank’s relationship with its global investor base and the market’s continued support for its sustainable development mandate,” Sumra said.<\/p>\n
<\/p>\n
Morgan Stanley Head of Sovereign, Supranational and Agency Ben Adubi said the bond attracted a diverse and high-quality investor base. “The deal is a true reflection of the issuer’s standing amongst the investor community,” Adubi said.<\/p>\n
<\/p>\n
Nomura Managing Director Spencer Dove said the issuance demonstrated the World Bank’s influence in global capital markets. “The World Bank has once again demonstrated true market leadership, opening the post-summer markets,” Dove said.<\/p>\n
<\/p>\n
TD Securities Global Head of SSA Paul Eustace said the successful transaction reflected the institution’s continued appeal among investors seeking high-quality assets.<\/p>\n
<\/p>\n
–WorldBank\/ChannelAfrica–<\/p>\n
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