WASHINGTON, DC, April 15, 2021 - The International Development Association (IDA, Aaa/AAA) priced its second transaction in the Euro market with a 15-year benchmark bond that raised EUR 1.75 billion. The bond which matures in April 2036 attracted nearly 60 orders from a diverse group of high-quality investors including many that participated in an IDA transaction for the first time. Demand was driven by the size and liquidity that the benchmark offers at the long end of the yield curve, as well by investors incorporating Environmental, Social and Governance (ESG) criteria and positive impact into their decision making. The funding supports IDA’s member countries sustainable development activities, including projects and programs to address the human and economic impacts of COVID-19.
The bond pays an annual coupon of 0.350% and has an issue price of 99.549%. It has a final spread of +37.6 basis points over the 0% German Bund due May 2036 reference bond, offering investors an annual yield of 0.381%. Deutsche Bank, J.P. Morgan, Natixis, and Société Générale are the joint lead managers.
“We thank the investors for joining the transaction, especially the more than twenty first time investors, helping IDA to continue to grow its bond program,” said Jingdong Hua, Vice President and Treasurer, World Bank. “The strong outcome for this 15-year bond, IDA’s second in Euros, demonstrates the confidence investors are placing in IDA while valuing its contribution to sustainable development and member countries’ COVID-19 response.”
Distribution by Geography
Distribution by Investor Type
Asset Managers / Insurance / Pension Funds
Central Banks / Official Institutions
Banks / Bank Treasuries / Corporates
Lead Manager Quotes
“The warm reception IDA received today with its Euro 1.75 billion 15-year Sustainable Development Bond is testament to IDA’s high credit quality and gradually growing investor following. This transaction marks IDA’s second Euro benchmark issuance since its inaugural 7-year transaction in 2019 and its first venture into the longer end of the Euro curve. Investors’ recognition of IDA’s significant mission and the ongoing efforts to position IDA in the market as a high-quality triple-A supranational ensured a successful return to the Euro market,” said Katrin Wehle, Managing Director, Sovereign, Supranational and Agency (SSA) Debt Capital Markets (DCM) Origination, Deutsche Bank.
“IDA made an impressive return to the Euro market, extending the longest maturity of its Euro curve by 10 years and adding a liquid Euro 1.75 billion 15-year reference point. The size and quality of the order book demonstrate the deep affinity that an expanding investor base of Euro investors holds for IDA’s mission, and firmly establish IDA’s standing within the Euro market,” said Keith Price, Head of Frequent Borrower Group, J.P. Morgan.
“This was a truly remarkable accomplishment today, for IDA, that we at Natixis we are grateful to have been a part of. The composition of high-quality investors was exceptional and sets a new standard that future transactions will strive for. This transaction further demonstrates that IDA’s bond program is on its way to joining an elite class of frequent issuers. The visibility this transaction provides to IDA as they build their presence in this strategic currency amongst key ESG accounts will prove invaluable, and we look forward to the future possibilities that lay ahead,” said Thomas Leocadio, Co-Head Public Sector DCM, Natixis.
“With this new highly successful and liquid 15-year transaction, its second in Euro ever, IDA has demonstrated the appeal of its credit quality with investors looking for triple-A bonds. IDA’s position and standing in the capital markets, as the newest issuer of the World Bank Group, was strengthened even further today,” said Olivier Vion, Head of Sovereign and Supranational Syndicate & DCM, Société Générale.
International Development Association (IDA)
Reg S - Registered Notes
April 22, 2021
April 22, 2036
0.350% p.a., payable annually in arrear
EUR 1,000 and multiples thereof
Luxembourg Stock Exchange
Deutsche Bank, J.P. Morgan, Natixis, Société Générale
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/I2 4ldbank.org
Heike Reichelt, Head of Investor Relations and Sustainable Finance, World Bank Treasury,
+1 202 477 2880