WASHINGTON, DC, April 26, 2022 - The International Development Association (IDA, Aaa/AAA) priced a 15-year Sustainable Development Bond that raised EUR 2 billion. This transaction builds on IDA’s efforts to extend its yield curve. The bond has an annual coupon of 1.750% and an issue price of 99.752%.
“We appreciate continued investor demand for long-dated IDA bonds as we continue to grow IDA’s issuance program,” said Jorge Familiar, Vice President and Treasurer, World Bank. “Issuing longer maturity bonds helps align bond issuance with IDA’s mandate to provide long-term to support countries that need it most as they make progress toward their development goals.”
Investor Distribution
Distribution by Geography | Distribution by Investor Type | ||
France | 37% | Asset Managers / Insurance / Pension Funds | 73% |
Germany | 31% | Banks / Bank Treasuries / Corporates | 20% |
Rest of Europe | 27% | Central Banks / Official Institutions | 7% |
Asia | 5% |
| |
Lead Manager Quotes
“Citi was delighted to be bookrunner on IDA’s fifth outing in the euro market. This benchmark refreshes the 15-year point on the curve that has been building since their inaugural euro outing in 2019. The orderbook’s representation from high-quality European accounts shows that IDA has established itself firmly within the euro SSA investor base in a short period of time. Congratulations to the IDA team on this successful benchmark,” said, Ebba Wexler, Managing Director, Public Sector Debt Origination, Citi.
“CACIB is proud to be associated with another successful benchmark transaction from IDA, which continues to deepen its investor penetration of the EUR market. Attracting an order book of such size and quality for a long-dated transaction in current market conditions, seizing one of the few strong windows of opportunity to complete its curve, is a testimony of the forensic investor work undertaken by IDA for the credit over the past couple of years,” said, Eric Busnel, Managing Director DCM, Crédit Agricole CIB.
“Congratulations to the IDA team: IDA´s timing has, once again, been spot on. On the back of an oversubscribed book, IDA was able to launch another successful EUR 2 billion transaction. Investors are increasingly perceiving IDA as one of the quality names with a regular issuance activity in the EUR markets. IDA plays a crucial role in supporting the financing of a combination of green and social projects, programs and activities in the poorest countries. DZ BANK feels honored to have been part of this EUR benchmark transaction of IDA,” said, Friedrich Luithlen, Head of Debt Capital Markets, DZ Bank.
“Another solid result for IDA’s second EUR benchmark of 2022. With this transaction, IDA was able to seize the right window to add another liquid point to their EUR curve, while expanding its global investor base. It is noteworthy that the issuer continues to flawlessly add in the long end of its euro curve, notwithstanding the challenging market backdrop in the context of rising rates. Morgan Stanley was very pleased to be involved in such a successful transaction," said, Ben Adubi, Head of SSA, Morgan Stanley.
Transaction Summary
Issuer: | International Development Association (IDA) |
Issuer rating: | Aaa/AAA |
Amount: | EUR 2,000,000,000 |
Format | Reg S - Registered Notes |
Settlement date: | May 5, 2022 |
Maturity date: | May 5, 2037 |
Issue price: | 99.752% |
Issue yield: | 1.769% per annum |
Coupon: | 1.750% per annum |
Coupon payment dates: | May 5 of each year |
Clearing systems: | Euroclear/Clearstream |
Denomination: | EUR 1,000 |
Listing: | Luxembourg Stock Exchange |
Lead managers: | Citi, Credit Agricole, DZ Bank and Morgan Stanley |
ISIN: | XS2475492349 |
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.
About IDA
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
Contact
Heike Reichelt, Head of Investor Relations and Sustainable Finance, World Bank Treasury,
IDAInvestorRelations@worldbank.org
+1 202 477 2880