The World Bank Prices 7-Year GBP Benchmark Bond Due July 2031
The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) has priced a 7-year British pound sterling (GBP) benchmark bond, set to mature in July 2031. This GBP 750 million Sustainable Development Bond (SDB) garnered interest from investors seeking a secure and liquid product while supporting the World Bank’s development efforts.
The bond offers an annual coupon of 4.125% and an annual yield of 4.181%, priced at +19.6 basis points over the 0.25% UK Gilt maturing in July 2031. BofA Securities, Barclays Bank PLC, Citigroup Global Markets Limited, and RBC Europe Limited are joint lead managers for this transaction, which will be listed on the Luxembourg Stock Exchange.
“This benchmark transaction jumpstarts what we expect to be a dynamic and productive fiscal year funding program for IBRD,” said Jorge Familiar, Vice President and Treasurer of the World Bank. “We appreciate the strong support from sterling investors and look forward to a year with a variety of offerings in currencies and tenors, all to be used to finance the World Bank’s sustainable development activities.”
Investor Distribution
By Geography
– United Kingdom: 81%
– Americas: 14%
– Europe/ Middle East / Asia: 5%
By Investor Type
– Banks/Bank Treasuries/Corporates: 75%
– Asset Managers/Insurance/Pension: 17%
– Central Banks/Official Institutions: 8%
“Congratulations to the World Bank team for their first public transaction of the new fiscal year with a landmark 7-year GBP transaction, securing the tightest spread to Gilts for a fixed rate Sovereign, Supranational and Agency (SSA) benchmark in this tenor in more than a decade. Achieving such a strong result reconfirms the Bank’s leadership in the SSA market as well as the longstanding support from the global investor base. It is once again a privilege for Barclays to have assisted the Bank team in this market,” said Alex Paterson, Managing Director, Head of SSA DCM, Barclays.
“A GBP 750 million transaction in the 7-year maturity reconfirms the strong and consistent support the issuer receives for its sustainable development purpose from the sterling investor base. The 7-year tenor complements IBRD’s sterling curve nicely and achieved robust demand from the UK bank treasury and real money community. BofA Securities is delighted to have supported the World Bank with this transaction,” said Kamini Sumra, Managing Director, SSA Origination, BofA Securities.
“Many congratulations to the Bank team for a successful new 7-year benchmark, the first in this tenor since September 2023. The transaction saw a broad range of investors participate, again evidencing the World Bank’s standing among the UK and international investor community. Citi was delighted to be involved in this great outcome,” said Ebba Wexler, Head of SSA Debt Capital Markets, Citi.
“The Bank’s return to the GBP market was an important demonstration of the continued liquidity and depth of the market. Doing so with a GBP 750 million 7-year SDB benchmark – the largest GBP benchmark since April – is a testament to the World Bank’s investor outreach as well as the track record of success that gives the market comfort. Congratulating the World Bank for reopening markets never gets old,” said Jigme Shingsar, Managing Director, SSA DCM, RBC.
About the World Bank
The Bank (International Bank for Reconstruction and Development, IBRD), rated Aaa/AAA (Moody’s/S&P), is an international organization founded 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 Sustainable Development Goals and to end extreme poverty and promote shared prosperity. It also coordinates regional and global responses to development challenges. The World Bank has issued sustainable development bonds in international capital markets for over 70 years to fund programs and activities with positive impacts. More information on World Bank bonds is available at [www.worldbank.org/debtsecurities](http://www.worldbank.org/debtsecurities).
The Bank bonds support financing programs that further the Sustainable Development Goals (SDGs). These bonds align with the Sustainability Bond Guidelines published by the International Capital Market Association (ICMA), supporting a mix of green and social projects in IBRD member countries as described in the Bank Sustainable Development Bond Framework. The World Bank is a member of the Executive Committee of the Green Bond, Social Bond, and Sustainability Bond Principles. A key priority for the Bank’s capital markets engagement is building strategic partnerships with investors to promote private sector financing in sustainable development. The World Bank’s Sustainable Development Bond Impact Report describes how the Bank engages with investors on the SDGs and raises awareness for specific development challenges.
