• The World Bank raises $6.5 billion through dual-tranche bonds with a record backlog of $22.7 billion.
• Investors from around the world, including central banks and asset managers, are driving unprecedented demand.
• The bonds underline the strong support for sustainable development initiatives worldwide.

The World Bank (IBRD, Aaa/AAA) has successfully raised US$6.5 billion through the issuance of a two-part sustainable development bond, creating its largest order book to date. The offering included a US$3 billion two-year bond due August 2026 and a US$3.5 billion ten-year bond due August 2034. The bonds attracted over 300 orders totaling over US$22.7 billion, reflecting strong global demand for safe, liquid investments that support sustainable development.

Jorge Familiar, Vice President and Treasurer of the World Bank, stressed the importance of this achievement: “This USD double-tranche issuance is a testament to the continued support of the World Bank by the global investment community. The overwhelming interest in bonds of both maturities, with a record backlog for a World Bank transaction, underscores the demand for safe and liquid investments combined with the opportunity to promote sustainable development in World Bank member countries.”

Investor breakdown:

• 75% of investments in the 2-year bond came from central banks/official institutions, with strong participation from the EMEA (44%), Americas (28%) and Asia (28%) regions.
• The 10-year bond was more diversified, with 43% coming from central banks/public institutions and 26% from asset managers/insurance companies/pension funds. The geographic distribution was topped by the EMEA region at 55%.

Alex Paterson, Managing Director and Head of SSA DCM at Barclays, commented: “The deal, which generated the largest order book of a World Bank multi-tranche transaction while also featuring the narrowest spread to sovereign bonds this year, reaffirms the borrower’s leading position in the SSA market and the continued support of its global investor base.”

The bonds will be listed on the Luxembourg Stock Exchange at competitive spreads over US Treasuries (+6.9 basis points for the 2-year and +13.9 basis points for the 10-year).

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Edward Mizuhara, Managing Director, Public Sector Syndicate at BMO Capital Markets, emphasized the strategic importance: “The finely tuned and high-quality allocation process will ensure placement of the bonds with a global and diverse buyer base, thereby advancing the World Bank’s mission to support sustainable development activities in member countries..”

This record transaction underscores the World Bank’s continued leadership in the sustainable bond market and enjoys strong support from a diverse, global investor base. The successful issuance not only reflects confidence in the World Bank’s creditworthiness, but also underscores increasing investor interest in sustainable investments.