WASHINGTON, DC, September 5, 2024 - The International Development Association (IDA, Aaa/AAA) today priced a USD 2.5 billion 7-year benchmark that matures on September 12, 2031. This is IDA’s first benchmark since the start of the 2025 fiscal year.
The bond offers a semi-annual coupon of 3.75% per annum and a semi-annual yield of 3.776%. It was priced at 14.4 basis points over the US Treasury due August 2031. J.P. Morgan, Morgan Stanley, RBC Capital Markets and Wells Fargo Securities are the joint lead managers.
“Today IDA launched its funding program for fiscal year 2025 which will provide investment opportunities in various currencies and maturities for fixed income investors. The global diversity of investors supporting this transaction represents investor’s interest in contributing to developing countries’ efforts to fight poverty, boost economic growth, and improve living conditions for millions of people on a livable planet,” said Jorge Familiar, Vice President and Treasurer, World Bank.
Investor Distribution
Distribution by Geography | % | Distribution by Investor Type | % |
Europe, the Middle East and Africa | 67% | Central Banks / Official Institutions | 38% |
Americas | 23% | Banks / Bank Treasuries / Corporates | 53% |
Asia | 10% | Asset Managers / Insurance / Pension Funds | 9% |
Joint Lead Manager Quotes
“Congratulations to the IDA team for executing a 7-year benchmark issuance, marking the fourth supranational issuance in this maturity in USD this year. We are proud to have supported IDA in this achievement,” said Sarah Lovedee, Head of Supranational DCM, J.P. Morgan.
“The diverse orderbook demonstrates the support for the work that IDA does to end extreme poverty and boost shared prosperity on a livable planet. Morgan Stanley was delighted to take part in today's transaction,” said Ben Adubi, Head of SSA Syndicate, Morgan Stanley.
“It is gratifying to see the growth of investor support for IDA and its important mission. Congratulations to the IDA team,” said Jigme Shingsar, Managing Director, RBC Capital Markets.
“Wells Fargo congratulates IDA on their 7-year transaction. We are delighted to be part of this transaction,” said Carlos Perezgrovas, Head SSA Origination, Wells Fargo Securities.
International Development Association (IDA) | |
Issuer rating: | Aaa/AAA |
Amount: | USD 2,500,000,000 |
Format | 144A/Reg S – Registered Notes |
Settlement date: | September 13, 2024 |
Maturity date: | September 12, 2031 |
Issue price: | 99.842% |
Issue yield: | 3.776% semi-annual |
Coupon: | 3.75% per annum payable semi-annually |
Denomination: | USD 1,000 and multiples thereof (144A notes minimum subscription of USD 200,000) |
Listing: | Luxembourg Stock Exchange |
Clearing systems: | DTC, Euroclear and Clearstream |
Joint lead managers: | J.P. Morgan, Morgan Stanley, RBC Capital Markets and Wells Fargo Securities |
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 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