Investor Demand Drives USD 5 Billion Bond to Finance World Bank’s Sustainable Development Activities

WASHINGTON, D.C., October 8, 2024 - The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced a 5-year benchmark bond that matures in October 2029. The Sustainable Development Bond raised USD 5 billion from global investors to support the World Bank's work for sustainable solutions that reduce poverty and build shared prosperity in developing countries.

The transaction attracted over USD 11 billion orders through 175 high-quality orders led by bank treasuries, closely followed by official institutions and asset managers. Investors focused on the World Bank's triple-A credit quality, the liquidity the bond offers, and sustainable development use of funds.

The lead managers are Deutsche Bank AG, Goldman Sachs International, J.P. Morgan Securities, and The Toronto-Dominion Bank. The bond will be listed on the Luxembourg Stock Exchange, offers a spread versus the reference US Treasury of +8.7 basis points and has a semi-annual yield of 3.933%.

"The World Bank finances its sustainable development activities from borrowings like this USD 5 billion benchmark, and by leveraging equity from its members" saidJorge Familiar Vice President and Treasurer, World Bank. "The strong reception, as evidenced by wide the oversubscription with over USD 11 billion in orders, demonstrates the importance of our strategy to bring to market high quality, liquid bonds in a variety of currencies and maturities."

Investor Distribution

Lead Manager Quotes

"The World Bank carefully chose its launch window to return to US dollars in the 5-year tenor, capitalizing on the higher yield environment after the supportive US labor market report and the ongoing strong bid for USD Sovereign, Supranational and Agency (SSA) bonds. The transaction attracted top quality orders and resulted in very wide distribution to a variety of accounts globally. Deutsche Bank is proud to have supported as a lead manager," said Katrin Wehle, Head of SSA DCM, Deutsche Bank.

"Congratulations to the World Bank team on the extremely successful USD 5-year global benchmark transaction. The World Bank continues to enjoy robust support from their global investor base as highlighted by a diverse orderbook with top-notch quality. Goldman Sachs is delighted to have been a part of this landmark transaction and to support the World Bank's sustainable development mandate," said Dorothee Amar, Co-head of SSA, Goldman Sachs.

"Today's 5-year USD benchmark from the World Bank highlights the issuer's strong market presence with an orderbook of USD 11.1 billion which is only behind its record setting April 2020 USD 8 billion 5-year transaction orderbook. With 175 orders, IBRD continues to enjoy one of the broadest USD investor bases in the SSA space. We are delighted to have been involved," said Sarah Lovedee, Head of Supranational DCM, J.P. Morgan.

"The World Bank has once again proven its established presence with the largest fixed income investors globally. TD is proud to have played a leading role in this USD 5 billion global benchmark that priced at the tightest spread to US Treasuries for any SSA so far in 2024," said Paul Eustace, Co-Head Global SSA DCM, TD 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 program.

Contact

Heike Reichelt, The World Bank

+1 202 477 2880

[email protected]

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