WASHINGTON, DC, October 24, 2023 - The International Development Association (IDA, Aaa/AAA) priced a USD 2.5 billion 5-year benchmark that matures on November 1, 2028. This is IDA’s sixth US dollar denominated bond.
The bond offers a semi-annual coupon of 4.875% per annum and a semi-annual yield 4.988%. It was priced at 18.38 basis points over the US Treasury due September 30, 2028. BNP Paribas, Citi, HSBC and TD Securities are the lead managers.
“This is IDA’s first US dollar issuance in more than two years and is part of IDA’s ongoing support of a wide range of development activities in its member countries. We thank investors for their support of IDA’s efforts to pave the way toward equality, economic growth, job creation, higher incomes, and better living conditions,” said Jorge Familiar, Vice President and Treasurer, World Bank.
Investor Distribution
By Investor Type | By Geography | ||
Banks / Bank Treasuries / Corporates | 45% | Europe / the Middle East/ Africa | 81% |
Central Banks / Official Institutions | 33% | Americas | 13% |
Asset Managers / Insurance / Pension Funds | 22% | Asia | 6% |
Joint Lead Manager Quotes
“A successful return for IDA to the US dollar market after over 2 years, especially given the volatile market backdrop which emphasizes how investors value the importance of its mission to support low-income countries. This outcome illustrates the work IDA is doing to start establishing itself in the capital markets,” said Jamie Stirling, Global Head of Sovereign, Supranational and Agencies (SSA) Debt Capital Markets, (DCM) BNP Paribas.
“IDA’s new 5-year benchmark met with strong demand, with the final orderbook of $3.8 billion representing IDA’s second largest ever in US dollar benchmark funding. The geographically diverse composition of the final orderbook is testament to the growing support for IDA’s sustainable development activities and its mission to support low-income countries. Citi is delighted to have participated in this transaction and support the continued expansion of IDA’s activities in the capital markets,” said Ebba Wexler, Head of SSA DCM, Citi.
“Congratulations to the World Bank team on IDA's successful return to the dollar market with today's 5-year benchmark. This transaction illustrates the global investor interest in IDA - with over $3.8 billion of investor demand, the result ticks all the right boxes when it comes to pricing, size and investor distribution. We are extremely proud at HSBC to play a role in this important transaction," said Asif Sherani Head of EMEA Syndicate, HSBC.
“TD Securities is delighted to be a lead manager on today's highly successful five-year US Dollar benchmark for IDA. This is an important return to the benchmark US dollar market for IDA. The strong response to this deal reaffirms the ongoing relevance of its sustainable development mandate to the global investor community,” said Paul Eustace, Head of Europe & Asia Syndicate, TD Securities.
Issuer: | International Development Association (IDA) |
Issuer rating: | Aaa/AAA |
Amount: | USD 2,500,000,000 |
Format | 144A/Reg S – Registered Notes |
Settlement date: | November 1, 2023 |
Maturity date: | November 1, 2028 |
Issue price: | 99.505% |
Issue yield: | 4.988% semi-annual |
Coupon: | 4.875% per annum payable semi-annually in arrear |
Denomination: | USD 1,000 and multiples thereof |
Listing: | Luxembourg Stock Exchange |
Clearing systems: | DTC, Euroclear and Clearstream |
Lead managers: | BNP Paribas, Citi, HSBC, TD Securities |
Senior co-lead managers: | BMO Capital Markets, National Bank of Canada Financial |
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. Payments on the securities described herein are not funded by 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