World Bank issues $4 billion Sustainable Development Bond

The World Bank has issued a $4 billion, 7-year benchmark Sustainable Development Bond, attracting significant investor interest with orders exceeding $11 billion, or more than 2.7 times the issuance amount.

The bond, issued by the International Bank for Reconstruction and Development (IBRD), is set to mature on August 25, 2033. Proceeds from the sale will fund green and social projects, programs, and activities aimed at supporting sustainable development goals in member countries.

Investor participation included over 150 global entities. Banks, treasuries, and corporations accounted for 43% of orders, followed by central banks and official institutions at 30%, and asset managers, insurance companies, and pension funds at 27%. Geographically, the EMEA region represented 42% of demand, the Americas 38%, and Asia 20%.

Jorge Familiar, Vice President and Treasurer at the World Bank Group, stated that the high level of demand reflects investor confidence in the institution’s financial strength and its ability to mobilize capital for sustainable development. The transaction was led by Bank of America, Morgan Stanley, Nomura, and TD Securities, and the bonds will be listed on the Luxembourg Stock Exchange.