Sunday, 21 July 2024
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FinanceWorld

The World Bank returns to the sterling market with an £850 million benchmark

  • The World Bank has priced a 7-year GBP benchmark bond due in August 2030.
  • The UK has the highest number of investors 86%.
  • The bond provides significant diversification to the World Bank’s presence in the global capital markets.

A benchmark bond for the World Bank (IBRD) with a 7-year maturity due in August 2030 and a GBP 850 million capital raise has been priced. In all World Bank member nations, the Sustainable Development Bond will be used to finance sustainable development initiatives.

The bond was priced at +39 basis points more than the 0.375% UK Gilt due in October 2030 and offers a 4.875% annual coupon and a 4.884% annual yield. Lead managers for the transaction are Deutsche Bank, NatWest, BofA Securities, and TD Securities. The Luxembourg Stock Exchange will host the bond’s listing.

World Bank

This is the IBRD’s first issuance in British pounds since January 2022, giving investors with an eye on the GBP a unique chance to support the World Bank’s initiatives to finance development projects that are inclusive of everyone, including women and young people, provide resilience to shocks, and are sustainable.

The UK has the highest number of investors(86%), followed by banks (59%), European/Middle East 7%, asset managers (25%), Americas 4%, central banks/official institutions 16%, and Asia 3%.

While negotiating a difficult environment, the World Bank has effectively re-entered the sterling market, securing both size and duration. The World Bank solely boasts a devoted and broad investor following, as seen by the participation of hitherto dormant investors in this transaction.

The bond provides significant diversification to the World Bank’s presence in the global capital markets and reflects the organization’s broader commitment to and focus on promoting sustainable development.

The World Bank has a devoted and varied investor base that has grown as a result of its decades-long commitment to the sterling market, as evidenced by the participation of hitherto dormant investors in this transaction.

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