The World Bank has priced two Sustainable Development Bonds, raising a total of $6.5bn from a $3bn two-year bond maturing in August 2026 and a $3.5bn ten-year bond maturing in August 2034.
According to the global bank’s statement seen by NewsNGR, the dual-tranche transaction attracted over 300 orders totaling more than $22.7bn. This represents the World Bank’s largest order book to date.
The dual-tranche format allowed a wide and diverse set of global bond investors to participate and accommodated a range of investment strategies across both the short and longer ends of the maturity spectrum.
Barclays, BMO, Citi and HSBC are the joint lead managers for both transactions. The bonds will be listed on the Luxembourg Stock Exchange.
The two-year tranche priced at a spread versus the reference US Treasury of +6.9 basis points, resulting in a semi-annual yield of 4.061 per cent, and the 10-year tranche priced at a spread versus the reference US Treasury of +13.9 basis points, resulting in a semi-annual yield of 3.951 per cent.
Vice President and Treasurer, World Bank, Jorge Familiar said, “This USD dual tranche issuance is a testament to the global investment community’s continuous support for the World Bank.
“The overwhelming interest for bonds in both maturities with a record-breaking order book for a World Bank transaction underscores the demand for safe and liquid investments combined with the opportunity to foster sustainable development in World Bank member countries.”
“Congratulations to the World Bank team for their first Fixed Rate benchmark of the new fiscal year, with a record-setting dual-tranche USD transaction that secured strong investor demand without compromising on pricing.
“The deal, which generated the largest ever multi-tranche orderbook for a World Bank transaction whilst pricing at this year’s tightest spread to treasuries – reaffirms the borrower’s leading position in the SSA market and the continuous support from its global investor base.”