WASHINGTON, DC, August 30, 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 2.50% and an issue price of 99.391%.
“We appreciate investors’ demand for IDA’s first issuance in fiscal year 2023,” said Jorge Familiar, Vice President and Treasurer, World Bank. “The transaction mobilizes private capital so that IDA can provide additional funding to countries that need it most, to help them meet their long-term sustainable growth objectives.”
Investor Distribution
Distribution by Geography | Distribution by Investor Type | ||
France | 35% | Asset Managers / Insurance / Pension Funds | 72% |
Germany | 33% | Banks / Bank Treasuries / Corporates | 23% |
Rest of Europe | 29% | Central Banks / Official Institutions | 5% |
Other | 3% |
| |
Lead Manager Quotes
“This transaction is another successful result for IDA. A solid book building process capturing high quality interest from a broad base of investors reflects IDA’s growing footprint in the Sovereign, Supranational and Agency (SSA) space. Today's transaction highlights the importance of IDA's mission to end extreme poverty and promote prosperity in developing countries.” Kamini Sumra, Managing Director SSA Origination, BofA Securities.
"With the largest 15-year EUR SSA benchmark since its own previous transaction in April 2022, IDA has successfully reopened the market for longer-dated EUR issuance after the summer break. In doing so, it has demonstrated the continued growth and sponsorship of its European investor base, and the strong support for IDA's sustainable development mission." Sarah Lovedee, Head of Supranational DCM, J.P. Morgan.
“We are incredibly proud at NatWest to have been involved in IDA’s first issuance of the new financial year. IDA’s growing presence in the EUR market is clearly demonstrated by today’s trade – with the strength and granularity of the order book highlighting the diverse appeal of the IDA name. For NatWest, this issuance reflects our wider commitment and focus on supporting sustainable development.” Damien Carde, Managing Director, Head of Frequent Borrower Group DCM, NatWest Markets.
“With the backdrop of a volatile interest rate environment, IDA successfully executed a 15-year transaction, and reopened the long end of the SSA market after a quiet summer period. The deal gathered a large and diversified book, highlighting growing international investor interest.” Olivier Vion, Head of SSA Primary Markets at Société Générale.
Transaction Summary
Issuer: | International Development Association (IDA) |
Issuer rating: | Aaa/AAA |
Amount: | EUR 2,000,000,000 |
Format | Registered Notes |
Settlement date: | September 7, 2022 |
Maturity date: | January 15, 2038 |
Issue price: | 99.391% |
Issue yield: | 2.549% per annum |
Coupon: | 2.50% per annum |
Coupon payment dates: | January 15 of each year commencing on January 15, 2023 |
Clearing systems: | Euroclear/Clearstream |
Denomination: | EUR 1,000 and multiples thereof |
Listing: | Luxembourg Stock Exchange |
Lead managers: | BofA Securities, J.P. Morgan, NatWest Markets, Société Générale |
ISIN: | XS2528875714 (Reg S) |
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