WASHINGTON, DC, October 9, 2024 – The International Development Association (IDA, Aaa/AAA) priced a 10-year Sustainable Development Bond raising EUR 1.75 billion that matures on October 17, 2034. This is the IDA’s second 10-year benchmark in euros.
The bond has an annual coupon of 2.80% and an issue price of 99.725%. The bond’s spread over the August 2034 German Bund equals +58.6 basis points, offering investors an annual yield of 2.832%.
“IDA is a key instrument for driving results in low-income countries. Investment in IDA bonds helps with scaling up life-changing support, building government capacity, and creating a better, more sustainable future,” said Jorge Familiar, Vice President and Treasurer, World Bank.
Investor Distribution
% | Distribution by Investor Type | % | |
France | 30% | Asset Managers/Insurance/Pension Funds | 26% |
Germany | 19% | Banks/Bank Treasuries/Corporates | 59% |
United Kingdom | 9% | Central Banks/Official Institutions | 15% |
Rest of Europe | 32% |
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Americas | 10% |
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Lead Manager Quotes
“This transaction, the first 10-year EUR benchmark in more than three years, is another milestone in IDA’s funding strategy to support the expansion of its action towards development progress of the world’s low-income countries. Crédit Agricole CIB is proud to be once again associated with IDA in its unique contribution to this long-term journey,” said Eric Busnel, Managing Director SSA DCM, Crédit Agricole CIB.
“IDA priced a 10-year Sustainable Development Bond today that is testimony to the relevance of IDA’s mandate to improve people’s lives in the 75 poorest countries in the world,” said Patrick Seifert, Head of Primary Markets & Global Syndicate, LBBW.
“The orderbook demonstrates the support from leaders in the industry to support the work IDA does to boost shared prosperity. Congratulations to the IDA Team! Morgan Stanley was proud to have supported today’s issuance,” said Ben Adubi, Head of SSA, Morgan Stanley.
“After the last euro benchmark issued in January, IDA has added another important and liquid point in its euro curve with this new 10-year Sustainable Development Bond. The EUR 1.75 billion transaction has received support from high quality European and international investors, contributing further to the footprint of IDA in the euro market. This new euro benchmark enhances the visibility of its mission to reduce poverty and create more prosperous communities around the world,” said Olivier Vion, Head of SSA Primary Markets, Société Générale.
Transaction Summary
International Development Association (IDA) | |
Issuer rating: | Aaa/AAA |
Amount: | EUR 1,750,000,000 |
Format | Reg S - Registered Notes |
Settlement date: | October 17, 2024 |
Maturity date: | October 17, 2034 |
Issue price: | 99.725% |
Issue yield: | 2.832% per annum |
Coupon: | 2.80% per annum |
Coupon payment dates: | Annually, on October 17 of each year |
Clearing systems: | Euroclear/Clearstream, Luxembourg |
Denomination: | EUR 1,000 |
Listing: | Luxembourg Stock Exchange |
Lead managers: | Crédit Agricole CIB, LBBW, Morgan Stanley, Société Générale |
ISIN: | XS2919906573 |
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