WASHINGTON, D.C., November 24, 2020 - The International Development Association (IDA, Aaa/AAA) priced its first 10-year USD benchmark that matures on December 3, 2030. The issuance is IDA’s longest dated maturity since it entered the capital markets in 2018.
The 10-year benchmark pays a semi-annual coupon of 1.000% and has an issue price of 99.385%. It has a final spread of +18.95 basis points over the 0.875% US Treasury due November 15, 2030 reference bond, offering investors a semi-annual yield of 1.065%. IDA raises funds to support its member countries’ sustainable development activities, including projects and programs to address the human and economic impacts of COVID-19.
Barclays, BofA Securities, HSBC and RBC Capital Markets are the joint lead managers for the transaction.
“We thank the global investor community for supporting IDA’s 10-year benchmark bond which extends IDA’s yield curve with its fourth liquid reference point in the US dollar market,” said George Richardson, Director, Capital Markets and Investments Department, Treasury, World Bank.“As a vital resource and key partner for sustainable development in its member countries, IDA’s growing capital market program helps IDA scale-up its impact, including supporting the urgent response to the COVID-19 pandemic.”
By Investor Type
Europe, the Middle East and Africa
Central Banks / Official Institutions
Banks / Bank Treasuries / Corporates
Asset Managers / Insurance / Pension Funds
Joint Lead Manager Quotes
"This transaction is a significant milestone for IDA given it is IDA’s longest maturity to date and also equals the record USD 2 billion recent 5-year. IDA’s USD curve is now fully established and should benefit from further investor support and associated secondary performance. This is particularly important given the key role IDA is playing in supporting the world’s poorest countries in the context of the COVID-19 pandemic," said Adrien de Naurois, Managing Director, BofA Securities.
“The IDA team has once again delivered an exceptional transaction, extending IDA’s USD curve with IDA entering a rare club of 10-year issuers within the Sovereign, Supranational and Agency (SSA) sector. To do so with a USD 2 billion 10-year benchmark, comparable to other top peers in what makes their debut effort, is impressive. In this challenging year, the continued work of IDA in its member countries is particularly important for the world, and it is a privilege for Barclays to have worked on this spectacular transaction with their team,” said Lee Cumbes, Head of Public Sector EMEA, Barclays.
“IDA achieved a highly successful outcome with its debut 10-year benchmark in the US dollar market. The transaction generated high-quality investor support across geographies, with notable participation from top-tier central banks, official institutions and bank treasuries, enabling a successful USD 2 billion print. The strength of this result in a challenging maturity bucket that relatively few SSA issuers can access, is testament to IDA’s growing recognition in the global capital markets. Congratulations to the team on positioning IDA as a premium credit in the US dollar market,” said Asif Sherani, EMEA Head of Syndicate, HSBC.
“IDA’s highly successful inaugural 10-year USD benchmark is the culmination of a carefully crafted strategy of building out the USD curve and reflects a very well received campaign of investor outreach. Demonstrated access to longer tenors is a hallmark of a mature credit, and IDA has been able to build a more diversified global investor base to support IDA’s worthy mission. We at RBC were very honored to be part of this groundbreaking transaction on behalf of an issuer who embodies the Sustainable Development goals that our respective institutions all aspire to,” said Jigme Shingsar, Managing Director, RBC Capital Markets.
International Development Association (IDA)
144A / Reg S Registered Notes
December 3, 2020
December 3, 2030
1.000% per annum payable semi-annually in arrear
USD 1,000 and multiples thereof
Luxembourg Stock Exchange
Barclays, BofA Securites, HSBC, RBC Capital Markets
Senior co-lead managers:
Deustche Bank, Wells Fargo
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.
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
Head of Investor Relations and Sustainable Finance
+1 202 477 2880