WASHINGTON, D.C., January 11, 2023 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) priced its first Euro-denominated benchmark of 2023, a EUR 3 billion 10-year Sustainable Development Bond maturing in January 2033. IBRD’s Euro benchmark transaction attracted over 100 orders totaling more than Euro 4.3 billion from European and global investors.
BNP Paribas, Deutsche Bank, Natixis and Nomura 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 +11 basis points and an equivalent annual yield of 2.910%. This equates to a spread vs. the reference Bund of 71.3 basis points.
“In a busy new year period for the markets we are extremely pleased with the response from investors for this Sustainable Development Bond,” said Jorge Familiar, Vice President and Treasurer, World Bank. “Funds raised by the World Bank in the capital markets are supporting its member countries as they respond to the many overlapping challenges being faced by those most in need, such as slowing global growth and elevated inflation.”
Investor Distribution
| By Investor Type | By Geography | ||
| Asset Managers/Insurance/Pension Funds | 25% | Germany | 13% |
| Banks/Bank Treasuries/Corporates | 54% | France | 25% |
| Central Banks/Official Institutions | 21% | Rest of Europe | 53% |
| Others | 9% | ||
Joint Lead Manager Quotes
“The World Bank’s first Euro benchmark since 2021 attracted an impressive volume of European high quality real money investor demand. Upsizing to the final Euro 3 billion deal size is an excellent achievement and equals their largest ever benchmark in the currency, particularly remarkable in the context of an incredibly active primary market with multiple issuances since the beginning of the year. Congratulations to the World Bank Treasury team for smoothly navigating a very busy market and delivering a great outcome,” said Jamie Stirling, Global Head SSA DCM, BNP Paribas.
