WASHINGTON, DC, January 11, 2022 - The International Development Association (IDA, Aaa/AAA) priced its first transaction of 2022 with a 20-year Sustainable Development Bond that raised EUR 2 billion. It is IDA’s longest maturity bond in any currency, and extends IDA’s Euro benchmark curve to 20 years.
The bond has an annual coupon of 0.70% and an issue price of 99.148%. The bond’s spread over the 3.25% German Bund reference bond equals +66.5 basis points, offering investors an annual yield of 0.746%.
“This Euro benchmark is an excellent start to IDA’s issuance in 2022. We appreciate investors’ demand for IDA at the longer-end of the Euro yield curve,” said Jorge Familiar, Vice President and Treasurer, World Bank. “Access to long-dated pools of private capital is important because it helps IDA fulfill its mandate to support countries that are most in need as they work to achieve their long-term sustainable development goals.”
Distribution by Geography
Distribution by Investor Type
Asset Managers / Insurance / Pension Funds
Banks / Bank Treasuries / Corporates
Central Banks / Official Institutions
Lead Manager Quotes
“A very impressive result for IDA as a relatively new Euro issuer, further extending its curve with a new 2 billion 20-year Sustainable Development Bond and building on the successes of its previous outings in 7, 10 and 15-year tenors.There was a healthy dynamic in the book-building from different pockets of high quality and broad-based Euro investors, reaching nearly 90 orders totaling over Euro 3.1 billion at its peak, which nicely reflects on IDA’s steadily growing footprint. With the proceeds directed at sustainable development projects, IDA will be able to continue to tackle the challenges faced IDA’s member countries. It is a real pleasure to observe IDA’s achievement in the sustainable capital markets with this offering,” said Katrin Wehle, Managing Director, SSA DCM Origination, Deutsche Bank.
“IDA has achieved a significant milestone in its capital markets journey, with its longest transaction to date. Since its debut in 2018 in US dollars, IDA has been growing its market presence as an important Supranational, Sovereign and Agency (SSA) borrower, with the ability to print benchmark size across the maturity spectrum in multiple currencies. The breadth of demand generated in this transaction is testament to the growing investor recognition of IDA’s credit quality and its mission to end extreme poverty and promote prosperity,” said Asif Sherani, Head of Syndicate EMEA, HSBC.
"With today’s transaction, IDA has successfully extended its curve to its longest dated bond - not just in the Euro market, but across currencies. The fact that it was able to achieve this result demonstrates the high regard that investors hold for the name and the importance of its development mission. Congratulations to the IDA team," said Sarah Lovedee, Executive Director, SSA DCM, J.P. Morgan.
“Today IDA successfully kicked off 2022 in Euro, as it extended its yield curve and was able to generate interest for its name in the market, despite the busy beginning of the year period. In a time of year when we reflect on resolutions, we are reminded of the important work of IDA for the world’s developing countries and the use of these proceeds in support of sustainable development. It was therefore a privilege to partner again with the IDA as they continue to realize strategic milestones,” said Thomas Leocadio, Co-Head Public Sector DCM, Natixis.
International Development Association (IDA)
Reg S - Registered Notes
January 18, 2022
January 17, 2042
0.746% per annum
0.70% per annum
Coupon payment dates:
Annually, every January 17 up to and including the Maturity Date
Luxembourg Stock Exchange
Deutsche Bank, HSBC, J.P. Morgan and Natixis
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