The World Bank (International Bank for Reconstruction and Development, IBRD, rated Aaa/AAA) has priced a 5 billion Norwegian krone-denominated floating rate Sustainable Development Bond, maturing on December 16, 2030. The bond carries a quarterly coupon of 3-month NIBOR plus 20 basis points and was issued at par. Nordea and SEB served as lead managers for the transaction, which was primarily placed with investors in Scandinavia, with bank treasuries acquiring 75% and asset managers 25% of the bonds.
Andrea Dore, Head of Funding at the World Bank Treasury, highlighted that the benchmark issuance demonstrates strong investor confidence in World Bank bonds and its development mandate. She emphasized the importance of long-standing partnerships with Nordic investors and the continued diversification of funding in the Norwegian krone market to support sustainable development financing in member countries.
Representatives from the lead managing banks also noted the significance of the transaction. Marcus Viitamäki, Head of SSA DCM at Nordea, described it as IBRD’s second NOK 5 billion benchmark transaction in 2025 and a reflection of broad and growing investor demand for sustainable bonds in the Norwegian market. Anna Sjulander, Head of SSA DCM at SEB, observed that the transaction brings the total World Bank issuance in Norwegian krone for 2025 to NOK 10 billion, demonstrating strong market demand and the increasing appeal of high-quality sustainable investments.
Overall, the issuance underscores the World Bank’s strong position in the Norwegian market and its ongoing efforts to mobilize funds for sustainable development projects in its member countries.
