IDA Funding Program

WASHINGTON, DC,  April 3, 2024 – The International Development Association (IDA, Aaa/AAA) today priced a 5-year Sustainable Development Bond raising GBP 800 million. IDA has a natural need to raise funding in pound sterling, as well as other Standard Drawing Rights (SDR) component currencies, since SDR is IDA’s functional currency.

The bond has an annual coupon of 4.125% and an issue price of 99.694%.  The bond’s spread over the SONIA reference rate of +30 basis points equates to a spread of +22.3 basis points over the 0.500% January 2029 Gilt reference bond, offering investors an annual yield of 4.194%.

“IDA is a catalyst for sustainable development in low-income countries leveraging resources to enhance impact for people and planet. We appreciate GBP investors’ support for IDA’s mission to help countries lift themselves out of poverty,” said Jorge Familiar, Vice President and Treasurer, World Bank.

Investor Distribution

Lead Manager Quotes

“Congratulations to IDA on its sterling benchmark issuance, capturing investor demand as well as the first issuance window of the new quarter. IDA’s critical mission of providing financing to low-income countries once again helped build the orderbook with the issuer again displaying leadership and depth of following in this market. Barclays is proud to have supported IDA in this transaction,” said Alex Paterson, Managing Director, Head of SSA DCM, Barclays.

“IDA returns to the GBP market with today’s GBP 5-year Sustainable Development Bond benchmark. The orderbook demonstrates the ongoing support for IDA’s sustainable development activities and its mission to support low-income countries. Congratulations to IDA on its first GBP benchmark of the year!” said Adrien de Naurois, Head of EMEA IG Syndicate, BofA Securities.

“We congratulate IDA on its first sterling benchmark of this calendar year. The new 5-year garnered support from the GBP investor base and underlines the global recognition of IDA’s mandate to support sustainable development projects in the world’s poorest nations. We are extremely proud at HSBC to play a role in this transaction,” said Asif Sherani, EMEA Head of Syndicate and Head of Public Sector DCM, HSBC.

“With this transaction, IDA reconfirms its commitment to the sterling market. To consistently issue in transaction sizes of GBP 800 million and above demonstrates the strong investor following IDA enjoys, alongside a commitment to provide investors with large and liquid benchmark transactions. This issuance reflects NatWest’s wider commitment and focus on supporting sustainable development, and we are proud to have been involved,” said Damien Carde, Managing Director, Head of FBG DCM, NatWest Markets.
 

Transaction Summary

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.

Disclaimers
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.

Contact
Heike Reichelt,
Head of Investor Relations and Sustainable Finance,
World Bank Treasury
IDAInvestorRelations@worldbank.org  
+1 202 477 2880