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