WASHINGTON, DC, July 8, 2021 - The International Development Association (IDA, Aaa/AAA) priced its first transaction of its new Fiscal Year with a 10-year Sustainable Development Bond that raised EUR 2 billion. IDA’s funding program has expanded from US 5 billion in Fiscal Year 2020 to US 10 billion in Fiscal Year 2021 that ended June 30, 2021.
The bond has an annual coupon of 0% and an issue price of 99.770%. Its spread over the 0% German Bund reference bond equals +39.3 basis points, offering investors an annual yield of 0.023%.
“We are pleased to kick-off IDA’s funding year with this Euro Benchmark, and appreciate investors’ demand for the newest triple-A issuer under the World Bank Group umbrella,” said Jingdong Hua, Vice President and Treasurer, World Bank. “IDA is a good fit for investors who incorporate Environmental, Social and Governance (ESG) criteria and positive impact into their decision making, especially today when IDA is directing its financial support to address the human and economic impacts of COVID-19 in its member countries.”
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Lead Manager Quotes
"With this new 10-year benchmark, IDA's largest Euro denominated Sustainable Development Bond since it entered the capital markets for the first time in 2018, the issuer starts its new fiscal year and continues to build its Euro yield curve. The high quality of the orders in the book and a pricing just above its peers are the best demonstration of the ongoing work to position IDA as a key player in the Sovereign Supranational and Agency (SSA) market and of the recognition of its unique mission within the World Bank Group to support developing countries," said Eric Busnel, Managing Director, Deputy Head of SSA Debt Capital Markets, Credit Agricole CIB.
“DZ BANK is delighted to have the opportunity to support IDA in its mission to fight extreme poverty and promote shared prosperity in a sustainable manner. Today, IDA has nicely kicked off its financial year with a new Euro transaction, thereby adding an important new reference point at the medium part of the yield curve. The solid oversubscription is a reflection of the following IDA is building in the triple-A and ESG community. This put IDA in the position to comfortably print its largest ever EUR trade,” said Friedrich Luithlen, Head of Debt Capital Markets, DZ BANK.
“We are incredibly proud at NatWest to have been involved in IDA’s first issuance of the new financial year. IDA not only attracted high-quality orders, but also achieved a record deal size of 2 billion. To achieve this against an ever-evolving market backdrop is testament to the position they are building in the SSA market. For NatWest, this issuance reflects our wider commitment and focus on supporting sustainable development, and we are proud to help IDA expand its global investor base and advance its mission to eradicate extreme poverty in a sustainable manner,” said Damien Carde, Managing Director, Head of Frequent Borrower Group DCM, NatWest Markets.
"We congratulate IDA for kick-starting its new fiscal year with its largest benchmark offering. This third Euro benchmark adds an important point to IDA's EUR curve in the 10-year maturity and catered to high quality demand from a cross-section of global investors. The bookbuilding momentum confirms the progress IDA is making in being recognized an important SSA borrower in the Euro market. It is an honor for TD to support IDA's growing capital markets presence that channels development finance to the world's poorest countries," said Laura O'Connor, Managing Director, Fixed Income Origination & Syndication, TD Securities.
International Development Association (IDA)
Reg S - Registered Notes
July 15, 2021
July 15, 2031
EUR 1,000 and multiples thereof
Luxembourg Stock Exchange
Credit Agricole CIB, DZ BANK, NatWest Markets and TD Securities
This press release does not constitute or form part of and should not be construed as an offer for sale or issue or the solicitation of an offer to buy or acquire the securities described in any jurisdiction or an inducement to enter into investment activity. No part of this press release, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. The offering and sale of the securities described in this document are subject to restrictions under the laws of several jurisdictions. Securities may not be offered or sold except in compliance with all such laws.
Net proceeds of the securities described herein are not committed or earmarked for lending to, or financing of, any particular projects or programs, and returns on the securities described herein are not linked to the performance of any particular project or program.
The International Development Association (IDA), rated Aaa/P-1 and AAA/A-1+ (Moody’s/S&P), is one of the largest sources of funding for fighting extreme poverty in the world’s poorest countries. Since its establishment in 1960, IDA has provided about USD400 billion for investments in over 100 countries. As an institution of the World Bank Group, IDA combines global expertise with an exclusive focus on reducing poverty and boosting prosperity. Proceeds of IDA bonds support sustainable development projects and programs in IDA eligible countries. Projects and programs supported by IDA are designed to achieve a positive social impact and undergo a rigorous review and internal approval process aimed at safeguarding equitable and sustainable economic growth. Information on IDA bonds is available at https://treasury.worldbank.org/IDAfunding
Heike Reichelt, Head of Investor Relations and Sustainable Finance, World Bank Treasury,
+1 202 477 2880