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IDA Funding Program

IDA Press Release

IDA Launches New Fiscal Year Funding Program with USD Benchmark Bond


WASHINGTON, DC, September 15, 2020 - The International Development Association (IDA, Aaa/AAA) priced its first bond of its fiscal year, a USD 2 billion 5-year benchmark that matures on September 23, 2025. This is IDA’s third issuance in USD, and its largest bond since it entered the capital markets in 2018.

The bond offers a semi-annual coupon of 0.375% per annum and semi-annual yield of 0.451%. It was priced at +18.15 basis points over the 0.25% US Treasury dated August 31, 2025. 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.

BMO Capital Markets, Citi, J.P. Morgan, and TD Securities are the joint lead managers for the transaction.

“IDA is playing an important role for developing countries, as they tackle the human and economic impacts of the pandemic. We are pleased to expand IDA’s capital market program with its largest bond to-date and are very grateful to investors for their increasing support for IDA’s sustainable development mission,” said Jingdong Hua Vice President and Treasurer, World Bank.

Investor Distribution

By Geography

%

 By Investor Type

%

Europe, the Middle East and Africa

49%

Banks / Bank Treasuries / Corporates

56%

Americas

31%

Central Banks / Official Institutions

29%

Asia

20%

Asset Managers / Insurance / Pension Funds

15%

“A statement transaction running parallel with IDA’s growth agenda as its largest ever primary market debt offering. This issuance further strengthens the IDA liquidity profile and investor base, as its capital market presence continues to grow in support of IDA’s sustainable development mandate. BMO is proud to be a part of this third-ever US Dollar issuance from IDA,” said Sean Hayes, Head of US Syndicate & Credit Sales, BMO Capital Markets.

“Congratulation to IDA and the World Bank team for a successful third USD benchmark issue.  IDA's role in supporting sustainable development globally is widely admired and endorsed by the investor community.  This is evidenced by the high-quality order book and final issue size of USD 2 billion, IDA's largest issue to date,” said Philip Brown, Head of Public Sector Debt Origination, Citi.

“We are delighted to have been involved in IDA’s third USD public benchmark issuance, a USD 2 billion 5-year transaction – marking IDA’s largest issue size to-date.  This record size for IDA was supported by an extremely high quality orderbook with a diverse selection of bank treasuries, central banks and fund managers globally.  Well done to the World Bank team and we look forward to working with IDA, as it is now emerging as a liquid and sizeable issuer in the capital markets,” said Keith Price, Head of Frequent Borrower Group, J.P. Morgan.

“Today's benchmark deal was an excellent start to IDA’s funding program for the 2020-2021 fiscal year. Amidst a busy month for Sovereign, Supranational and Agency (SSA) primary markets, IDA chose the correct pricing strategy that successfully captured the interest of high-quality investors globally for its Sustainable Development Bond. This new USD 2 billion 5-year benchmark will set a template for future issuances to continue to broaden its appeal," said Paul Eustace, Head of Syndicate, TD Securities. 

 

Issuer:

International Development Association (IDA)

Issuer rating:

Aaa/AAA

Amount:

USD 2,000,000,000

Format

144A / Reg S Registered Notes

Settlement date:

September 23, 2020

Maturity date:

September 23, 2025

Issue price:

99.625%

Issue yield:

0.451% semi-annual

Coupon:

0.375% semi-annual

Denomination:

USD 1,000

Listing:

Luxembourg Stock Exchange

Lead managers:

BMO Capital Markets, Citi, J.P. Morgan, TD Securities

Senior co-lead managers:

National Bank Financial, 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.

 

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://www.worldbank.org/en/about/unit/treasury/ida.

 

Contact

Heike Reichelt, Head of Investor Relations and Sustainable Finance, World Bank Treasury,

IDAInvestorRelations@worldbank.org

+1 202 477 2880