World Bank raises €2.5b euro bond, 1st for FY25

The World Bank, represented in the International Bank for Reconstruction and Development (IBRD), has successfully raised €2.5 billion through a new 7-year euro-denominated benchmark bond in August 2031, demonstrating strong global investor interest in sustainable development initiatives.

“Our first euro-denominated deal of fiscal year 2025 has generated very strong demand from investors across the globe,” Jorge Familiar, Vice President and Treasurer at World Bank, said in a statement. “With this successful issuance, we are raising €2.5 billion towards impactful projects that align with our goals of reducing poverty and fostering shared prosperity on a livable planet.”

The transaction attracted over 75 orders totaling almost €4 billion, from European and global investors pursuing safe and liquid investment opportunities with a positive impact on sustainable development.

BofA Securities, Deutsche Bank, Goldman Sachs International, and Natixis are the joint lead managers for the transaction, the World Bank statement added. The bond will be listed on the Luxembourg Stock Exchange (LuxSE).

The bond priced with a final spread to euro mid-swaps of +16 basis points and an equivalent annual yield of 2.604 per cent, and this equates to a spread vs. the reference Bund of +50.6 basis points.

“The success of this transaction not only marks the re-opening of the Euro primary market after the summer, but the first trade in this strategic currency by the World Bank for the new fiscal year 2025.” said Thomas Leocadio, Co-Head Public Sector DCM, Natixis.

“As the World Bank continues to add liquid points to the Euro curve, the decision to return to the 7-year tenor for the first time since 2020 solidifies the demand for this highly sought after institution.” Leocadio added.

Attribution: World Bank statement

Subediting: Y.Yasser