World Bank issues new $4bn sustainable development bond
The World Bank has announced it has raised $4bn through issuing a new seven-year benchmark Sustainable Development Bond.
The bond, which was issued by the International Bank for Reconstruction and Development, carries a 4.50% coupon and matures in August 2033.
It will support the financing of a combination of green and social projects and programs in member countries, with the aim of ending extreme poverty and boosting shared prosperity on a liveable planet, the Sustainable Development Goals (SGDs), and positive social and environmental outcomes in countries.
The World Bank said it had seen strong demand for the new bond, with orders reaching over $11bn.
More than 150 investors participated, with 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 (30%) and asset managers, insurance and pension funds (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.
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