World Bank Prices CAD 600 Million Sustainable Development Bond

The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced a 5-year CAD 600 million Sustainable Development Bond that matures on July 22, 2026. World Bank bonds support the financing of a combination of green and social projects, programs, and activities for sustainable development in IBRD member countries. Each project is designed intentionally to achieve positive social and environmental impacts in line with the World Bank’s goals of eliminating extreme poverty and promoting shared prosperity.

The 5-year benchmark transaction pays a semi-annual coupon of 1.200% p.a. and has an issue price of 99.792% and a final spread of +29.90 bps over the 0.250% CAN March 2026 reference bond, offering investors a yield of 1.243% (semi-annual). Joint lead managers for this transaction are BMO Capital Markets, RBC Capital Markets, Scotiabank, and TD Securities.

Jingdong Hua, Vice President and Treasurer, World Bank, said: “We are pleased to be back in the Canadian market early in our fiscal year. This funding is critical as we continue to support countries to strengthen health systems, access and deploy vaccines, protect the poor and vulnerable, and restore economic growth. We thank Canadian investors for their ongoing support.”

Investor Distribution

Sean Hayes, Head of US Syndicate & Credit Sales, BMO Capital Markets, said: “World Bank continues to demonstrate unwavering commitment to Canadian dollar primary markets to start its new fiscal year, with this deal representing its tenth consecutive fiscal year issuing a benchmark-sized CAD transaction. The World Bank’s presence has cultivated growth across high-grade capital markets for sustainable investment in Canada and continues to draw strong domestic and international support. BMO is a proud partner”.

Cesare Roselli, Global Head of SSA (Sovereign, Supranational, and Agency) Origination, Scotiabank, said: “Scotiabank is proud to have acted as bookrunner in the World Bank’s 5-year CAD 600 million Sustainable Development Bond, its first CAD-denominated transaction of the 2022 fiscal year, issued to support the financing of a combination of green and social projects, programs, and activities in member countries. The transaction resulted in strong involvement of the domestic ESG investment community in Canada and underscored the exceptional support that the World Bank enjoys in that jurisdiction”.

Jigme Shingsar, Managing Director, RBC Capital Markets, said: “The World Bank’s return to the CAD market reflects a consistent strategy of adding liquidity in key markets while fostering the continued development of the global market for sustainable development and ESG bonds. The third World Bank CAD Sustainable Development Bond of 2021 once again captured a very high-quality order book that reflected continued gains in distribution into Canadian investors which bodes well for the long-term development of the market for SSA borrowers in Canada”.

Sameer Rehman, Director, Government Finance, TD Securities, said: “The World Bank continues to prove it is the pre-eminent Maple issuer by establishing another benchmark reference point in its well-defined curve with today’s new 5-year offering. With over CAD 11 billion now outstanding in the Maple market, the World Bank has strategically positioned itself to capture the full spectrum of currently active CAD investors, leading to a high quality orderbook. We are delighted to have been involved in this transaction, which once again reflects the global recognition of the World Bank name”.

Transaction Summary

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