WB raises $6.5b in record sustainable bond deal

The World Bank has raised $6.5 billion through a dual-tranche Sustainable Development Bond transaction, marking its largest order book to date. The issuance includes a $3 billion 2-year bond maturing in August 2026 and a $3.5 billion 10-year bond maturing in August 2034.

The transaction attracted over 300 orders, totaling more than $22.7 billion. The 2-year bond priced at a yield of 4.061 per cent, while the 10-year bond priced at 3.951 per cent.

The bonds, managed by Barclays, BMO, Citi, and HSBC, will be listed on the Luxembourg Stock Exchange. Jorge Familiar, Vice President and Treasurer of the World Bank, highlighted the strong global demand for safe and liquid investments contributing to sustainable development.
Investor participation in the 2-year bond was dominated by central banks and official institutions at 75 per cent, with 19 per cent from banks, treasuries, and corporates, and 6 per cent from asset managers, insurance, and pension funds. On the other hand, for the 10-year bond, central banks and official institutions accounted for 43 per cent, banks, treasuries, and corporates 31 per cent, and asset managers, insurance, and pension funds 26 per cent.

Geographically, investors in the 2-year bond were primarily from Europe, the Middle East, and Africa (44 per cent), followed by the Americas (28 per cent), and Asia (28 per cent). The 10-year bond saw 55 per cent of its orders from Europe, the Middle East, and Africa, 30 per cent from the Americas, and 15 per cent from Asia.

Attribution: World Bank

Subediting: M. S. Salama