World Bank launches CAD 1.4 B 5-year sustainable development bond with diverse global support

The World Bank, through the International Bank for Reconstruction and Development (IBRD), has unveiled a new 5-year benchmark bond valued at CAD 1.4 billion, set to mature on January 12, 2029.This strategic move is part of the World Bank’s ongoing efforts to finance sustainable development initiatives in its member countries.According to the World Bank, the 5-year benchmark bond, designed to support sustainable development projects, comes with a semi-annual coupon rate of 3.50 per cent p.a.

It was priced at 99.678 per cent, boasting a final spread of 32.9 basis points over the CAN 3.250 per cent September 2028 reference bond.Investors are offered a yield of 3.571 per cent (semi-annual) on this initiative. CIBC, RBC Capital Markets, National Bank Financial, and TD Securities stand as the joint lead managers, contributing to the success of this transaction.

Jorge Familiar, Vice President and Treasurer of the World Bank, expressed satisfaction with the institution’s dynamic start to the year, having successfully concluded transactions in Australian dollars, US dollars, and now Canadian dollars.Familiar said, “It has been a dynamic start to the new year for the World Bank, as we conclude successful transactions in three different currencies AUD, USD and now in CAD. This transaction has appealed to a strong diverse investor base across the globe, with investors seeking safe, liquid and positive impact investment opportunities in Canadian dollars.”

Investor Distribution by Investor Type- Central Banks/Official (55 per cent), Banks/Bank Treasuries/Corporates (34 per cent), Asset Managers/Insurance/Pension Funds (11 per cent).Investor Distribution by Region- Americas (48 per cent), Asia (34 per cent), Europe/Middle East/Africa (18 per cent).”We congratulate the whole  World Bank on the successful execution of its latest Maple bond issuance. We commend the institution’s enduring tradition of inaugurating each calendar year with the first Maple offering.

This commitment underscores the World Bank’s dedication to the Canadian market, while the use of its Sustainable Development Bond label highlights the institution’s pivotal role in advancing both social and environmental sustainability on a global scale,” said Priya Radha, Managing Director & Global Head, Government Solutions, CIBC Capital Markets.
“The World Bank is known for demonstrating leadership in the capital markets. It was great to see the World Bank open the Canadian Maple market with a highly successful 5-year CAD 1.4 billion Sustainable Development Bond.

The deal saw solid demand and momentum right out of the gate and that momentum continued throughout the process resulting in a diverse geographic and investor book. It was a pleasure and privilege to partner with the World Bank on this outstanding transaction,” said Scott Graham, Managing Director & Head of US Government and Sovereign Supranational and Agency (SSA) Finance, National Bank Financial.

“The World Bank successfully reopened the Maple SSA market in 2024 with another large size trade in excess of CAD 1 billion, further cementing the World Bank’s standing as the largest SSA maple issuer. The transaction highlights continued strong demand for World Bank paper in the Canadian dollar market. Congratulations to the World Bank team for a highly successful transaction,” said Alex Caridia, Managing Director, Head of Public Sector Markets, RBC Capital Markets.

“Many congratulations to the World Bank team for an impressive start to 2024, highlighted by today’s CAD 1.4 billion deal. The demand from the broad spectrum of domestic and international investors reflects the exceptional track record of the World Bank as they continue to show leadership in the CAD market,” said Laura O’Connor, Managing Director, Fixed Income Origination & Syndication, TD Securities.The success of this issuance not only strengthens the World Bank’s commitment to sustainable development but also underscores the institution’s ability to attract diverse global support for its initiatives.