World Bank launches $5bn sustainable development bond

The World Bank launched on Tuesday its new fiscal year funding programme with $5 billion five-year global benchmark Sustainable Development Bond which will mature on July 28, 2025.

A press release of the WB said, "Extremely strong demand from global investors for the USD benchmark led to an orderbook of over USD 6 billion, with more than 100 investor orders, anchored by central banks and official institutions."

Other investors included bank treasuries, asset managers, as well as pension and insurance funds, it said.

According to the World Bank, "The 5-year benchmark pays a semi-annual coupon of 0.375 percent per annum and has an issue price of 99.866 percent and a final spread of 13.85bps over the 0.25 percent US Treasury due June 2025 reference bond, offering investors a yield of 0.402 percent."

Joint lead managers for this transaction are Citi, Goldman Sachs International, Morgan Stanley, and TD Securities.

"This US dollar benchmark is a terrific start to our fiscal year," said Jingdong Hua, vice president and treasurer of the World Bank.

"In this challenging period, investors from around the globe continue to value the World Bank's safety, liquidity, and purpose to finance sustainable development in its member countries. We are grateful for the support of market participants and look forward to working together in the year ahead," he added.