The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) has priced a new three-year CAD $1.5 billion Sustainable Development Bond, maturing in September 2028. The benchmark transaction carries a semi-annual coupon of 2.90% per annum, an issue price of 99.946%, and a final spread of 9.8 basis points over the CAN 3.25% September 2028 reference bond, offering investors a semi-annual yield of 2.919%. The joint lead managers for the issuance were BMO Capital Markets, CIBC, National Bank Financial, and Scotiabank.
Jorge Familiar, Vice President and Treasurer of the World Bank, highlighted that the bond marks a dynamic start to the new fiscal year, following successful transactions in two currencies, USD and CAD. He emphasized that the benchmark attracted broad investor interest, reflecting strong demand for secure, liquid investments that also generate positive social and environmental impact.
The issuance received exceptional support from investors, with an order book exceeding CAD 2.3 billion, making it the largest on record for a CAD-denominated transaction. Lead managers praised the World Bank’s return to the Canadian Maple market after more than a year, noting that the strong demand underscores the Bank’s ability to re-open markets and the enduring appeal of its sustainable development commitments.
BMO Capital Markets, CIBC, National Bank Financial, and Scotiabank all emphasized the significance of the bond, citing its size, investor participation, and the World Bank’s continued engagement in the Canadian market. The CAD $1.5 billion Sustainable Development Bond reflects the institution’s commitment to impactful financing and demonstrates robust investor confidence in its global initiatives.
