WASHINGTON, DC, October 19, 2021 – The International Development Association (IDA, Aaa/AAA) made its debut in Norwegian krone with a 5-year benchmark bond that raised NOK 2 billion. The bond matures on February 17, 2027. DNB Markets and Skandinaviska Enskilda Banken (SEB) are the joint lead managers for the transaction.
The bond offers an annual coupon of 1.750% and an annual yield of 1.799%.
IDA bond proceeds support the financing of projects and programs in eligible IDA countries as they advance the Sustainable Development Goals, including those which are helping support member countries as they respond to the human and economic impacts of COVID-19.
Jingdong Hua, Vice President and Treasurer, World Bank, said: “We are very pleased to make IDA’s debut in Norwegian krone and grateful for continued investor support for IDA’s development mission. Support for IDA remains critical as IDA countries face dual crises – the COVID-19 pandemic and climate change. Access to capital markets allows IDA to scale up development impact and programs alongside donor support to address these challenges and build more resilient and inclusive communities.”
By Investor Type
Central Banks/Official Institutions
Margrethe Ouren, DNB Markets, Director FICC, said: “It has been a great privilege for DNB Markets to act as a lead manager on the IDA inaugural Sustainable Development Bond denominated in NOK. The Sustainable Development Bond format is an opportunity to support IDA’s work on green and social projects, programs, and activities in IDA’s member countries, which we find especially crucial as the world continues to fight the effects of the pandemic. We congratulate IDA on this outstanding inaugural NOK transaction, which was very well received by the Scandinavian investor community.”
Christopher Flensborg, Head of Climate and Sustainable Finance, SEB, said: “For SEB, it's a great privilege to work with the World Bank Treasury team again, this time for IDA’s first bond in NOK. IDA has given Scandinavian investors the opportunity through their investment to support low-income countries amidst the ongoing challenges presented by the Covid pandemic. We are encouraged to see issuers like IDA taking a leading role in accessing the capital markets to tackle these challenges and bring us a step closer to global recovery.”
Louis Nordstrand, Liquidity Manager Sparebanken Møre, said: “Sparebanken Møre is proud to invest in this inaugural NOK denominated bond from IDA. IDA’s efforts over many years to end extreme poverty and achieve positive development impact around the world are of high value to us. Moreover, furthering the growth of the Norwegian sustainable bond market through this Sustainable Development Bond issue is important to Sparebanken Møre’s green and social ambitions going forward.”
The following investors participated in the transaction: DNB Treasury, Danske Bank Asset Management, Sparebanken 1 SR Bank, Sparebanken Møre, and Affirmative Investment Management.
International Development Association (IDA)
October 26, 2021
February 17, 2027
1.750% p.a., paid annually in arrear
Luxembourg Stock Exchange
DNB Markets and SEB
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. The IDA Sustainable Development Bond Framework and the information set forth therein are not a part of, or incorporated by reference into, the offering documentation.
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 USD 400 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 the financing of a combination of green and social, i.e., “sustainable development” projects, programs and activities in IDA member countries as described in the IDA Sustainable Development Bond Framework. IDA Bonds are aligned with the Sustainability Bond Guidelines published by the International Capital Market Association. Information on IDA bonds is available at http://www.worldbank.org/en/about/unit/treasury/ida.
Heike Reichelt, Head of Investor Relations and Sustainable Finance, World Bank Treasury,
+1 202 477 2880