World Bank Opens Fiscal Year 2025 US Dollar Benchmark Program with USD 2.7 Billion in SOFR Index-Linked Sustainable Development Bonds

WASHINGTON, D.C., July 17 - The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced two Sustainable Development Bonds, raising a total of USD 2.7 billion. The benchmarks included a USD 2 billion 3-year bond linked to the Secured Overnight Financing Rate (SOFR) index, maturing in June 2027, and a USD 700 million tap of an existing 7-year bond linked to SOFR index, maturing in February 2031.

The dual tranche transaction attracted over 110 orders with an order book of nearly USD 4.7 billion [which was] bolstered by a diverse set of global investors seeking a high credit quality product in floating rate format. The 3-year SOFR-index linked note pays a coupon of Compounded SOFR +27 basis points and the existing 7-year SOFR-index linked note pays a coupon of Compounded SOFR +37 basis points.

HSBC Bank Plc., The Bank of Nova Scotia, and Wells Fargo Securities, LLC are the lead managers for the transaction. The bond will be listed on the Luxembourg Stock Exchange.

"We are grateful for the enormous level of support we received for this SOFR dual tranche benchmark which jumpstarts our fiscal year in US dollar benchmark program," said Jorge Familiar, Vice President and Treasurer, World Bank. "As the size of the order book demonstrates, investors recognize our commitment to the SOFR market and very much welcome an opportunity to participate across different points on the yield curve."

Investor Breakdown by Type

Investor Breakdown by Geography

Lead Manager Quotes

"Congratulations to the World Bank team on printing largest Supranational SOFR Floating Rate Note (FRN) transaction since 2022. The dual tranche generated significant support from a diverse mix of high-quality investors. This once again demonstrates the World Bank's status as a leading borrower in the US dollar market, with strong market access across formats and tenors," said Asif Sherani, Head of Syndicate EMEA and Head of Public Sector DCM at HSBC.

"Scotiabank was pleased to serve as a joint bookrunner for this strategically timed dual tranche. The depth and diversity of investors involved in this transaction underscores the World Bank's top credit quality and sustainable development purpose. Congratulations to the team on today's transaction!" said Bob Nguyen, Global Head of Fixed Income Origination, Scotiabank.

"This dual tranche transaction reaffirms the World Bank's position as the most active SSA borrower in the US dollar floating rate space and as result, the one with deepest and most diverse investor bases in the product. Driven mainly by strong bank treasury demand, the oversubscribed orderbook allowed price tightening on the 3-year, and an increase from the issuer's minimum issue size on both tranches. Congratulations to the World Bank team for being a leader in the FRN market," said Carlos Perezgrovas, Head SSA Origination, Wells Fargo Securities.

Transaction Summary

About the World Bank

The World Bank (International Bank for Reconstruction and Development, IBRD), rated Aaa/AAA (Moody's/S&P), is an international organization. Created in 1944, it is the original member of the World Bank Group and operates as a global development cooperative owned by 189 nations. The World Bank provides loans, guarantees, risk management products, and advisory services to middle-income and other creditworthy countries to support the Sustainable Development Goals and to end extreme poverty and promote shared prosperity. It also provides leadership to coordinate regional and global responses to development challenges. The World Bank has been issuing sustainable development bonds in the international capital markets for over 70 years to fund programs and activities that achieve a positive impact. More information on World Bank bonds is available at www.worldbank.org/debtsecurities.

World Bank bonds support the financing of programs that further the Sustainable Development Goals (SDGs). World Bank bonds are aligned with the Sustainability Bond Guidelines published by the International Capital Market Association (ICMA) and as such support the financing of a combination of green and social, i.e., "sustainable development" projects, programs and activities in IBRD member countries as described in the World Bank Sustainable Development Bond Framework. The World Bank is also a member of the Executive Committee of the Green Bond, Social Bond, and Sustainability Bond Principles. A key priority for the World Bank's capital markets' engagement is building strategic partnerships with investors to promote the importance of private sector financing in sustainable development. The World Bank's Sustainable Development Bond Impact Report describes how the World Bank engages with investors on the SDGs and raises awareness for specific development challenges.

Disclaimers

This press release is not an offer for sale of securities of the International Bank for Reconstruction and Development ("IBRD"), also known in the capital markets as "World Bank". Any offering of World Bank securities will take place solely on the basis of the relevant offering documentation including, but not limited to, the prospectus, term sheet and/or final terms, as applicable, prepared by the World Bank or on behalf of the World Bank, and is subject to restrictions under the laws of several countries. World Bank securities may not be offered or sold except in compliance with all such laws. The World Bank Sustainable Development Bond Framework, the World Bank's Sustainable Development Bond Impact Report, and the information set forth therein are not a part of, or incorporated by reference into, the offering documentation.

Net proceeds of the bonds described herein are not committed or earmarked for lending to, or financing of, any particular projects or programs. Payments on the bonds described herein are not funded by any project or progra.

Contact

Investor Relations and Sustainable Finance, World Bank Treasury, [email protected]

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