World Bank issues first global benchmark of new fiscal year 2020

The 5-year Global Sustainable Development Bond raised CAD 1.5 billion from institutional investors around the globe to finance the World Bank’s sustainable development lending.

The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced the first global benchmark issue of its new fiscal year 2020*. The 5-year Global Sustainable Development Bond raised CAD 1.5 billion from institutional investors around the globe to finance the World Bank's sustainable development lending. This transaction matches the World Bank's largest CAD benchmark, issued in January 2019, the largest bond issued by an SSA (sovereigns, supranational, and agencies) in the Canadian market.

BMO Capital Markets, RBC Capital Markets, and TD Securities were joint lead managers for this transaction. The bond will be listed on the Luxembourg Stock Exchange.

The CAD 1.5 billion offerings enjoyed strong market reception from the onset, with indications of interest surpassing CAD1.1 billion overnight. The final orderbook was oversubscribed, with final books in excess of CAD1.85 billion. The high quality, the diversified order book was reflected in the allocation to 47 investors globally.

This Sustainable Development Bond is issued as part of a World Bank initiative to engage investors on the Sustainable Development Goals (SDGs). The World Bank's goals of ending extreme poverty by 2030 and promoting shared prosperity in a sustainable manner are aligned with the SDGs. Increasingly, investors and other market participants are using the SDGs as a framework for investment and way to communicate support for specific development priorities. Through this engagement, the World Bank and the joint lead managers seek to raise awareness of SDG 6, Clean Water and Sanitation, and SDG 14, Life Below Water.

The World Bank, as the largest multilateral funder for ocean and water projects in developing countries, is committed to working with countries to ensure access to safe and clean water and for the sustainable use of ocean and marine resources. This includes avoiding pollution reaching oceans through better waste management.

Jingdong Hua, World Bank Vice President, and Treasurer said: "We are happy to see such a robust response from investors highlighting their commitment to high-quality investments that support sustainable development. Freshwater and marine ecosystems are integral to regulating climate, while also providing nutrition, jobs, and livelihoods. Through our partnership with investors, we want to sharpen the focus on these challenges and highlight the essential role investors play in achieving the Sustainable Development Goals."