World Bank Launches Successful 15-Year Euro Sustainable Development Bond

The bond priced with a final spread to mid-swaps of +25 basis points and an equivalent annual yield of 3.130%. This equates to a spread vs. the reference Bund of 76.4 basis points.   

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Jorge Familiar, World Bank

The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) successfully priced a 15-year Euro-denominated benchmark bond maturing in April 2038, raising EUR 2 billion.

The transaction, which represents the first Euro 15-year benchmark for Supranationals and Agencies in 2023, attracted over 90 orders totaling EUR 2.6 billion, appealing to European and global investors seeking high credit quality and a sustainable investment at the long end of the curve.

BNP Paribas, Credit Agricole CIB, DZ Bank, and NatWest Markets are the lead managers for the transaction. The bond will be listed on the Luxembourg Stock Exchange.

The bond priced with a final spread to mid-swaps of +25 basis points and an equivalent annual yield of 3.130%. This equates to a spread vs. the reference Bund of 76.4 basis points.

“The World Bank raises funds in the capital markets to finance projects that secure sustainable, inclusive, and resilient development in our member countries. This transaction offers European and global investors an opportunity to invest in these activities while at the same time benefitting from a safe and liquid asset for their Euro portfolios,” said Jorge Familiar, Vice President and Treasurer, World Bank. “This Sustainable Development Bond is another example of how the World Bank mobilizes private capital and the important role the private sector plays in financing development.”

Investor Distribution

By Geography By Investor Type
Germany 31%   Asset Managers/Insurance/Pension Funds 59%
France 31%   Banks/Bank Treasuries/Corporates 28%
Rest of Europe 34%   Central Banks/Official Institutions 13%
Others 4%      

“Another impressive Euro outing for the World Bank in 2023 who have firmly established themselves as a strategic issuer in Europe delivering a textbook execution in a far more difficult maturity than in recent years. Indeed, their ability to raise EUR 2 billion in a longer dated maturity emphasizes the strong support they receive from European investors as proven by the 96% distribution into the region,” said Jamie Stirling, Managing Director, Head of SSA DCM, BNP Paribas. “The timeline chosen by the World Bank enabled the transaction to capture maximum market focus and competitive pricing.”

“Following last January's new 10-year EUR benchmark and an absence from the EUR market in 2022, this successful EUR billion benchmark transaction marks the World Bank's return to the 15-year sector, filling a gap in their EUR curve”, said Eric Busnel, Deputy Head of SSA DCM, Credit Agricole CIB. “Taking swift advantage of a good window of issuance in the context of stabilizing markets, the start of the new quarter and the resumption of EUR investors' interest for primary supply after a couple of weeks of strong volatility, the World Bank gathered an order book of exceptional quality. Credit Agricole CIB is proud to have been associated with this very special transaction.”

“Perfect timing and swift execution for this new 15-year EUR 2 billion benchmark transaction by the World Bank. The orderbook quality was remarkable and the bond opened the 15-year segment for Supranationals and Agencies for this year,” said Patricio Bustos-Heppe, Senior Vice President, DZ Bank. “The World Bank and its Sustainable Development Bonds have clearly an outstanding reputation for the Euro investor community. DZ Bank is delighted to have been part of this very successful transaction.”

“With this trade, IBRD has issued the first 15-year benchmark in the Supranational and Agency space this year.  This was an exceptional result, with a EUR 2 billion print coming at tight pricing versus European peers”, said Damien Carde, Managing Director, Head of SSA DCM, NatWest Markets. “For NatWest, this issuance reflects our wider commitment and focus on supporting sustainable development and we are incredibly proud to have been involved.”

Transaction Summary

Issuer: World Bank (International Bank for Reconstruction and Development, IBRD)
Issuer rating: Aaa /AAA (Moody's/S&P)
Amount: EUR 2,000,000,000
Settlement date: April 14, 2023
Maturity date: April 14, 2038
Issue price: 99.645%
Issue yield: 3.130% annual
Denomination: EUR 1,000
Coupon: 3.10% p.a., payable annually
Listing: Luxembourg Stock Exchange
ISIN: XS2611177382
Clearing system: Euroclear/Clearstream
Joint lead managers: BNP Paribas, Credit Agirocle CIB, DZ Bank, NatWest Markets


Jorge Familiar World Bank