Chicago, Jan. 3 – International Bank for Reconstruction and Development, the lending arm of the World Bank Group, priced $5 billion of 4% global bonds with a seven-year tenor (Aaa/AAA), according to information from a market source regarding the Wednesday deal.
The bonds priced at a 99.505 discount to yield 4.082%, or at Treasuries plus 16.7 basis points. Alternatively, the bonds priced at SOFR mid-swaps plus 55 bps.
Initial guidance had the bonds coming in the SOFR mid-swaps plus 56 bps area. The spread was set when the order book went over $9.25 billion. The final book was over $11 billion.
BMO (billing and delivery), Barclays, BNP Paribas and Citigroup were bookrunners.
Proceeds will be used to support the financing of a combination of green and social projects, programs and activities in member countries.
The sustainable development bond will be listed in Luxembourg.
The global development financing cooperative is based in Washington, D.C.
| Issuer: | International Bank for Reconstruction and Development
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| Amount: | $5 billion
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| Issue: | Global sustainable development bonds
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| Maturity: | Jan. 10, 2031
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| Bookrunners: | BMO (billing and delivery), Barclays, BNP Paribas and Citigroup
|
| Coupon: | 4%
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| Price: | 99.505
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| Yield: | 4.082%
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| Spread: | Treasuries plus 16.7 bps, or SOFR mid-swaps plus 55 bps
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| Trade date: | Jan. 3
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| Settlement date: | Jan. 10
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| Ratings: | Moody’s: Aaa
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| S&P: AAA
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| Distribution: | Global SEC exempt
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| Price talk: | SOFR mid-swaps plus 56 bps area
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| ISIN: | US459058LA95
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