Record Demand for World Bank USD 5 Billion 7-Year Sustainable Development Bond

WASHINGTON, D.C., September 2, 2021 - The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) priced a USD 5 billion 7-year Sustainable Development Bond maturing in September 2028. The deal attracted nearly 150 orders and an orderbook reaching over USD 10.2 billion, a record for the World Bank in the maturity. Orders were anchored by globally diverse central banks and bank treasuries, who were joined by asset managers, corporates and other official institutions. World Bank bonds support its mission to help members achieve sustainable and inclusive development.

Deutsche Bank, J.P. Morgan, Morgan Stanley and RBC Capital Markets are the lead managers for the transaction. The bond priced at a spread vs. the reference US treasury of + 8.3 basis points, resulting in an equivalent annual yield of 1.155%.

'This is a tremendous outcome for the first USD fixed rate benchmark of the World Bank's new fiscal year and first public trade after the summer break,' said Jingdong Hua, Vice President and Treasurer, World Bank.'The robust demand that made this deal so successful also gives a strong signal of momentum for the market as a whole.'

Investor Distribution:

By Geography	By Investor Type
Europe/Middle East/Africa	53%	Central Banks/Official Institutions	47%
Asia	28%	Banks/Bank Treasuries/Corporates	38%
Americas	19%	Asset Managers/Insurance/Pension Funds	15%

Lead Manager Quotes

'An outstanding result for the World Bank once again, taking advantage of a strong post-summer USD Supranational, Sovereign and Agency (SSA) market and attractive yield curve steepness to bring another 7-year Sustainable Development Bond benchmark, matching the size of the largest 7-year SSA USD benchmark which was launched by the issuer back in April this year. The headline orderbook breaking the World Bank's prior records in that maturity coming out at $10.2 billion highlights the continued appeal of its triple-A credit to global investors, as well as to those seeking sustainable investment products. Deutsche Bank is delighted to have supported the World Bank in this prestigious transaction,' said Katrin Wehle, Managing Director, Sovereign, Supranational & Agency Origination, Deutsche Bank.

'The World Bank reopens the USD long-end issuance and kick starts its new fiscal year's USD benchmark funding with an impressive $5 billion 7-year benchmark. The Sustainable Development Bond attracted the largest USD 7-year order book in the SSA space to date, and priced at the tightest mid-swap reoffer spread for a 7-year benchmark since 2015 - again proving the World Bank's global investor reach and widespread support for its development mission and its work in reaching the Sustainable Development Goals,' said Keith Price, Head of Frequent Borrower Group, J.P. Morgan.

'A privilege to be part of World Bank's first USD benchmark of the fiscal year. The stunning reception of the 7-year benchmark, which saw demand in excess of $10.2 billion, further reaffirms the issuer's appeal with the global institutional investor base,' said Ben Adubi, Head of SSA Syndicate, Morgan Stanley.

'The World Bank's spectacular return to the USD market with an unprecedented second USD 5 billion 7-year benchmark this year for the World Bank, reinforces its status as the preeminent issuer of Sustainable Development Bonds. The sheer size and quality of the book as well as the pricing achieved highlights the incredible investor franchise they have built up over years of hard work. Our congratulations to the World Bank team for setting yet another benchmark for benchmarks,' saidJigme Shingsar, Managing Director, RBC Capital Markets.

Transaction Summary

Issuer:	World Bank (International Bank for Reconstruction and Development, IBRD)
Issuer rating:	Aaa /AAA
Amount:	USD 5 billion
Settlement date:	September 13, 2021
Maturity date:	September 13, 2028
Issue price:	99.799%
Issue yield:	1.155% semi-annual
Denomination:	USD 1,000
Coupon:	1.125% p.a., payable semi-annually in arrear
Listing:	Luxembourg Stock Exchange
ISIN:	US459058JZ74
Clearing system:	Fedwire, Clearstream, Euroclear
Lead managers:	Deutsche Bank, J.P. Morgan, Morgan Stanley and RBC Capital Markets
Senior co-lead managers:	Daiwa, National Bank Financial Canada and Wells Fargo

For more information on the World Bank Group and COVID-19: www.worldbank.org/en/who-we-are/news/coronavirus-covid19

About the World Bank

The World Bank (International Bank for Reconstruction and Development, IBRD), rated Aaa/AAA (Moody's/S&P), is an international organization. Created in 1944, it is the original member of the World Bank Group and operates as a global development cooperative owned by 189 nations. The World Bank provides loans, guarantees, risk management products, and advisory services to middle-income and other creditworthy countries to support the Sustainable Development Goals and to end extreme poverty and promote shared prosperity. It also provides leadership to coordinate regional and global responses to development challenges. The World Bank has been issuing sustainable development bonds in the international capital markets for over 70 years to fund programs and activities that achieve a positive impact. More information on World Bank bonds is available at www.worldbank.org/debtsecurities.

World Bank bonds support the financing of programs that further the Sustainable Development Goals. World Bank bonds are aligned with the Sustainability Bond Guidelines published by the International Capital Market Association. The World Bank is also a member of the Executive Committee of the Green Bond and Social Bond Principles. A key priority for the World Bank's capital markets' engagement is building strategic partnerships with investors to promote the importance of private sector financing in sustainable development. The World Bank's Sustainable Development Bond Impact Report describes how the World Bank engages with investors on the SDGs and raises awareness for specific development challenges.

Disclaimers

This press release is not an offer for sale of securities of the International Bank for Reconstruction and Development ('IBRD'), also known in the capital markets as 'World Bank'. Any offering of World Bank securities will take place solely on the basis of the relevant offering documentation including, but not limited to, the prospectus, term sheet and/or final terms, as applicable, prepared by the World Bank or on behalf of the World Bank, and is subject to restrictions under the laws of several countries. World Bank securities may not be offered or sold except in compliance with all such laws.

The net proceeds from the sale of World Bank securities are used to finance sustainable development projects and programs in World Bank's member countries without being committed or earmarked for lending to, or financing of, any particular projects or programs. Returns on World Bank securities are not linked to the performance of any particular project or program.

Contact

Heike Reichelt, The World Bank
+1 202 477 2880
[email protected]

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