World Bank Prices First CAD Sustainable Development Bond of 2022

The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced a new 5-year CAD 1.5 billion benchmark that matures on January 19, 2027. The World Bank launched the Sustainable Development Bond while raising awareness for the World Bank’s strategy, projects and programs that focus on strengthening health systems and ongoing efforts to help member countries as they work to contain the spread and impact of COVID-19.

The 5-year benchmark transaction pays a semi-annual coupon of 1.800% p.a. and has an issue price of 99.829% and a final spread of 36.55 bps over the CAN 1.00% September 2026 reference bond, offering investors a yield of 1.836% (semi-annual). Joint lead managers for this transaction are BMO Capital Markets, National Bank Financial Markets, RBC Capital Markets and TD Securities.

Jorge Familiar, Vice President and Treasurer, World Bank, said “We are extremely pleased with our first Canadian dollar benchmark transaction of the new year and are grateful to investors for their support for the World Bank’s sustainable development activities, including ongoing efforts around strengthening health systems and work that helps contain the spread and impact of COVID-19. This work remains critical to supporting countries as they strengthen their pandemic response and social protection measures for the poor and vulnerable while supporting businesses and safeguarding jobs.”

Investor Distribution 

By Geography By Investor Type
Americas47%Central Banks/Official Institutions44%
Asia36%Asset Managers/Insurance/Pension Funds23%
Europe/Middle East/Africa17%Banks/BankTreasuries/Corporates     33%

Sean Hayes, Managing Director & Head, US Syndicate & Credit Sales, BMO Capital Markets, said, “For a fifth consecutive year, World Bank re-opens SSA Canadian dollar primary markets. Pricing CAD 1.5 billion in size, World Bank stands alone as the only international SSA borrower to achieve this large milestone, thanks to high quality Canadian domestic and international investor demand. The consistency of World Bank’s presence in Canadian dollar debt capital markets is what has driven the ongoing investor partnerships in support of World Bank’s sustainable development mission. Congrats to World Bank, BMO was pleased to be involved in this resounding success.”

Scott Graham, Managing Director, National Bank Financial Markets, said, “Once again, the World Bank demonstrated its leadership and commitment to the Canadian fixed income markets by executing the first Maple transaction of 2022. The transaction was met with overwhelming demand from investors around the world and resulted in a book in excess of CAD 1.75 billion. The large domestic and asset management participation is a sign the Canadian sustainable finance market continues to mature. NBF could not be any prouder to partner with the World Bank.”

Jigme Shingsar, Managing Director, RBC Capital Markets, said, “World Bank has reopened the CAD market in style, and this will obviously provide a key benchmark for others to emulate. Investor demand for World Bank’s latest CAD Sustainable Development Bond was significant and diverse – most gratifying is the continued growth of the domestic investor base – a reward for all the hard work the funding team has done to develop the ESG investor base in Canada over many years.”

Laura O’Connor, Managing Director, Fixed Income Origination & Syndication, TD Securities, said, “We congratulate the World Bank for successfully opening the Maple market in 2022 with an impressive 5-year CAD 1.5 billion Sustainable Development Bond. The transaction was well timed against the backdrop of wider swap spreads, generating broad investor interest from the outset. The compelling relative value resulted in a final order book in excess of CAD 1.75 billion.TD was delighted to be involved in this stellar transaction from World Bank.”

Summary Terms:

Issuer:World Bank (International Bank for Reconstruction and Development, IBRD)
Issuer rating:Aaa/AAA (Moody’s/S&P)
Amount:CAD 1,500,000,000
Settlement date:January 19, 2022
Maturity date:January 19, 2027
Issue price:99.829%
Issue yield:1.836% semi-annually
Coupon:1.800% per annum
Denomination:CAD 1,000
Listing:Luxembourg Stock Exchange
Clearing system:CDS, Clearstream, Euroclear
Joint lead managers:BMO Capital Markets, National Bank Financial Markets, RBC Capital Markets and TD Securities