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World Bank Issues First Benchmark Bond of 2024, Boosting Sustainable Development Goals

Strategic Insights

— 1 min read

The World Bank (International Bank for Reconstruction and Development, IBRD) has successfully issued its first benchmark bond of 2024, totaling AUD 2 billion, with a 5-year tenure and a semi-annual coupon rate of 4.30%. This transaction is a testament to the World Bank's strong credit quality and commitment to supporting sustainable development projects in its member countries. The bond issuance marked a remarkable start to the World Bank's funding program for the new year, with a record-breaking AUD 2 billion transaction size, surpassing the largest SSA Kangaroo bond on record.

Key Takeaways:

  • The World Bank has successfully priced its first benchmark bond of 2024, a AUD 2 billion 5-year bond due January 10, 2029, with a semi-annual coupon rate of 4.30%.
  • The transaction attracted over 50 orders totaling more than AUD 2.4 billion from investors, drawn to IBRD's high credit quality and the World Bank's mission.
  • The joint-lead managers for the transaction were Deutsche Bank, J.P. Morgan, Nomura International plc, and RBC Capital Markets.
  • The bond issuance supports the Sustainable Development Goals (SDGs) and is aligned with the Sustainability Bond Guidelines published by the International Capital Market Association.
  • 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.
  • The transaction marked a record-breaking start to the World Bank's funding program for 2024, with a AUD 2 billion transaction size, surpassing the largest SSA Kangaroo bond on record.

Statistics:

  • The bond issuance totaled AUD 2 billion, with a semi-annual coupon rate of 4.30%.
  • The transaction attracted over 50 orders, with a net order book of AUD 2.4 billion.
  • The joint-lead managers for the transaction were Deutsche Bank, J.P. Morgan, Nomura International plc, and RBC Capital Markets.
  • The minimum denominations and minimum holding for the bond are AUD 1,000.
  • The minimum consideration payable when issued in Australia is AUD 500,000.
  • The bond matures on January 10, 2029.

Sources:

  • World Bank, "World Bank Prices First Benchmark Bond of 2024"
  • World Bank, "The World Bank Sustainable Development Bond Framework"
  • International Capital Market Association, "Sustainability Bond Guidelines"
  • World Bank, "Sustainable Development Bond Impact Report"

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