World Bank kicks off FY25 with $2.7b in sustainable bonds tied to SOFR rate
The World Bank initiated its fiscal year 2025 US Dollar Benchmark Programme by pricing two sustainable development bonds, totaling $2.7 billion. This includes a $2 billion 3-year bond and a $700 million tap of an existing 7-year bond, both linked to the Secured Overnight Financing Rate (SOFR).
The transaction attracted over 110 orders, with the order book reaching nearly $4.7 billion, indicating strong global investor interest. The three-year bond offers Compounded SOFR +27 basis points, while the seven-year bond offers Compounded SOFR +37 basis points.
The bonds will be listed on the Luxembourg Stock Exchange.
Lead managers for the transaction are HSBC, the Bank of Nova Scotia, and Wells Fargo.
| Investor Breakdown by Type | ||
| 3-Year | 7-Year | |
| Banks/Bank Treasuries/Corporates | 62% | 97% |
| Asset Managers/Insurance/Pension Funds | 20% | 2% |
| Central Banks/Official Institutions | 18% | 1% |
| Investor Breakdown by Geography
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| 3-Year | 7-Year | |
| Europe/Middle East/Africa | 56% | 71% |
| Americas | 41% | 21% |
| Asia | 3% | 8% |
Attribution: World Bank statement