The World Bank priced a 6.3-year, £1.25 billion Sustainable Development Bond maturing in November 2032, carrying an annual coupon of 4.750 percent and a yield of 4.766 percent, priced at 9.9 basis points over the comparable UK Gilt. Barclays, Citi and Santander served as joint lead managers, and the bond will be listed on the Luxembourg Stock Exchange. Demand exceeded £1.9 billion against the £1.25 billion issued.
Barclays managing director Alex Paterson said the pricing, at SONIA mid-swaps plus 36 basis points or 9.9 basis points over the June 2032 Gilt, represented "IBRD's tightest ever GBP fixed rate spread on both measures," a distinction indicating the World Bank secured more favourable borrowing terms in sterling than in any of its prior pound-denominated fixed-rate bond issuances. Citi's Ebba Wexler noted the transaction marked "the first Tier 1 SSA issuer to reopen the GBP market following the summer break," positioning the World Bank as the first major sovereign, supranational or agency borrower to issue in sterling following the market's typical seasonal summer slowdown.
UPCOMING WEBINAR
AI academy: Two real ESG workflows saving days of manual work
Online, 03 September 2026 · Turning days of emissions data work into minutes with audit-ready AI workflows
Investor demand was heavily concentrated in the United Kingdom, accounting for 89 percent of the order book, with Europe, the Middle East and Africa contributing 6 percent and the Americas 5 percent. By investor type, banks, bank treasuries and corporates represented 78 percent of demand, asset managers, insurers and pension funds 20 percent, and central banks and official institutions 2 percent.
World Bank Group Vice President and Treasurer Jorge Familiar said the reception from sterling investors had been "exceptional, complementing the World Bank's benchmark transactions in USD, EUR this month," framing the issuance as part of a broader pattern of strong investor demand across multiple currencies during the period. Proceeds from Sustainable Development Bonds support the World Bank's broader lending programme financing development activities across its member countries, though the release does not specify particular projects or sectors this specific issuance will fund. Santander's Sean Taor described the transaction as reinforcing "IBRD's GBP curve" and underscoring "the depth of demand" the World Bank enjoys in the sterling market.
Source: WORLD BANK GROUP
Subscribe to our newsletter for more insights, case studies, and ESG intelligence.
Keep abreast of the top ESG Events on OneStop ESG Events.
OneStop ESG Educate: Your go-to source for top ESG courses and training programs tailored to your needs.
Stay informed with the latest insights on OneStop ESG News.
Discover meaningful career opportunities on OneStop ESG Jobs.
Daniel Dun
Senior Advisor
Daniel is a finance professional with experience across commodities trading, investment banking, and private credit, having worked with firms like Glencore and BTG Pactual across global markets. He has worked on carbon offset products and project finance, with a focus on sustainability and capital markets. He has also supported product management at BlockFi, helping bridge DeFi and traditional finance. Daniel holds a Master’s degree in Economics.
Comments
Have a thought on this? Share it with other readers.