The World Bank successfully raised €2.5 billion through a seven-year euro-denominated bond, attracting global solid demand from investors committed to sustainable development amid challenging market conditions
The World Bank has issued a €2.5 billion bond maturing in August 2031, marking its first euro-denominated deal of the current fiscal year. The bond, to be listed on the Luxembourg Stock Exchange, drew substantial interest, with over 75 orders amounting to nearly €4 billion from investors worldwide.
This transaction was managed by BofA Securities, Deutsche Bank, Goldman Sachs International, and Natixis as joint lead managers. The bond was priced with a spread of +16 basis points over euro mid-swaps, translating to an annual yield of 2.604 percent. This represents a +50.6 basis point spread over the reference German Bund.
Jorge Familiar, Vice President and Treasurer of the World Bank commented on the strong demand for the issuance, noting that it would help fund impactful projects aligned with the World Bank’s mission to reduce poverty and promote shared prosperity. "Our first euro-denominated deal of fiscal year 2025 has generated robust demand from investors across the globe," Familiar said. "With this successful issuance, we are raising €2.5 billion towards impactful projects that align with our goals of reducing poverty and fostering shared prosperity on a livable planet."
Kamini Sumra, Managing Director of SSA Origination at BofA Securities, praised the World Bank's strong return to the European market, highlighting the quality and diversity of the order book as evidence of sustained investor support for the bank's sustainable development initiatives.
Similarly, Katrin Wehle, Managing Director and Head of SSA DCM at Deutsche Bank emphasised the significance of the bond's success in attracting a broad-based and high-quality order book. "With today’s transaction, the World Bank has successfully complemented its Euro curve by a new liquid line in the 7-year space. This new bond attracted a very high-quality, broad-based and diverse order book," she said.
Dorothee Amar, Co-head of SSA at Goldman Sachs, and Thomas Leocadio, Co-Head of Public International at Natixis, both echoed these sentiments, underlining the strategic importance of the World Bank’s return to the 7-year tenor in the euro market, particularly in light of the current volatile and uncertain market backdrop.
This successful bond issue not only marks the reopening of the Euro primary market after the summer but also reinforces the World Bank’s strong position in the European financial markets and its ongoing commitment to sustainable development.