The World Bank announced that it has raised $4 billion through the issuance of a new 7-year benchmark Sustainable Development Bond.
World Bank Sustainable Development Bonds support the financing of a combination of green and social projects, programs, and activities in member countries. Investments support the World Bank Group mission to end extreme poverty and boost shared prosperity on a livable planet, the Sustainable Development Goals (SGDs), and positive social and environmental outcomes in countries.
The World Bank reported strong demand for the new bond, with orders reaching over $11 billion. Banks, bank treasuries and corporates made up the largest group of investors in the new bonds at 43%, followed by central banks and official institutions at 30% and asset managers, insurance and pension funds at 27%.
Jorge Familiar, Vice President and Treasurer at World Bank Group, said:
“This 7-year Sustainable Development Bond demonstrates the confidence that high-quality investors place in the World Bank’s mission and its ability to mobilize capital for sustainable development. The quality of the orderbook reflects investors’ recognition of the World Bank’s financial strength and the positive impact of the programs these bonds support.”
Lead managers on the transaction include Bank of America, Morgan Stanley, Nomura, and TD Securities.
Kamini Sumra, Managing Director at BofA Securities, said:
“Congratulations to the World Bank on an impressive return to the USD market and its first USD benchmark of the new fiscal year. The USD 4 billion print was met with strong investor demand, highlighting the enduring strength of the World Bank’s relationship with its global investor base and the market’s continued support for its sustainable development mandate.”
