WORLD BANK BONDS FORSUSTAINABLE DEVELOPMENTWhat is the World Bank?
Why invest with the World Bank?

ROADMAP

What investment products does theWorld Bank offer?
How is the World Bank engaging
with investors on the Sustainable
Development Goals?
Annex: Project stories© World Bank

WHAT IS THE WORLD BANK?

WORLD BANK INTRODUCTION• International organization owned by 189 member countries – its owners are
its clients.
• Purpose is to end extreme poverty on a livable planet. These goalsalign with the Sustainable Development Goals.
• The world’s largest source of development finance and expertise – 75+
years of financing development projects.
• About $260 billion in loans outstanding to 78 countries.
• Nearly 12,000 staff in 136 offices. Headquarters in Washington, DC.

• Largest shareholders: US, Japan, China, Germany, France, and the UK.
• International Bank for Reconstruction and Development – IBRD, known as“World Bank” in the capital markets, is rated AAA/Aaa based on its capital,
reserves and prudent financial policies.

© World BankWorld Bank Headquarters
Washington, DC

3
Strictly

HISTORY OF THE
WORLD BANKIBRD was created in 1944 to rebuild Europe after WorldWar II and was soon referred to as the “World Bank”.
 IBRD was designed to be financially self-sustaining
and earn income to support its development activities.
 First loans were made to developed countries forreconstruction purposes.
 IBRD's focus shifted towards poverty alleviation in
the 1960s and it continued to lend to countries thatwere creditworthy and could borrow at market-based
rates.
 In the 2020s an explicit focus on global public goods
led to adding “on a livable planet” to the vision.

4
Strictly

OVERVIEW

5

IBRD

IDA

IFC

MIGA

ICSID

INTERNATIONAL BANK FOR
RECONSTRUCTION AND
DEVELOPMENT

INTERNATIONAL
DEVELOPMENTASSOCIATIONINTERNATIONALFINANCECORPORATIONMULTILATERALINVESTMENT
GUARANTEE AGENCY

INTERNATIONAL CENTRE
FOR THE SETTLEMENT OFINVESTMENT DISPUTES

Provides loans togovernments of middleincome countries.

Provides loans and grants
to governments of lowerincome countries.

Promotes development by financing
private sector enterprises indeveloping countries.

Promotes foreign direct
investment into developing
countries by offering politicalrisk insurance (guarantees)
to investors and lenders.

Provides international
facilities for conciliation andarbitration of investment
disputes.

Issuer of World Bank(IBRD) Bonds

Funds raised fromdonors and IDA Bonds
144A/RegS

Issuer of IFC Bonds

IBRD, IDA and IFC are all three rated AAA/Aaa. They share the same overall development goals,
but are legally separate entities. Each has its own risk profile and capital structure.
The World Bank Treasury is the treasury for IBRD and IDA.
Strictly

SUSTAINABLE DEVELOPMENT BONDS
All World Bank bonds support sustainable development. They offer investors
the opportunity to invest in financial products with a high credit rating while
supporting projects with positive impact
01

03

02

© World Bank

© World Bank

Goals of the World BankGroup

Project Results

Sustainable Development
Goals (SDGs)

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THE WORLD BANK BUSINESS MODEL
How World Bank Projects are Financed

Financing and knowledge supports projects across sectors

PrivateInvestors

Principal +Interest

Bond
Proceeds

Loans toMember Countries

Paid-in Capital+ Reserves
Strong balance sheet,prudent risk
management & capital
support triple-A rating

Agriculture

Education

Energy & Extractives

Financial Sector

HealthIndustry & Trade

Info &
Communications

PublicAdministration

Social Protection

Principal +Interest

Transportation

Water/Sanitation/Waste

7
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PROJECTS MUST MEETSTRICT STANDARDSThe World Bank works with its member countries
to design projects that meet their sustainable
development needs.
All projects are designed to:
•
•
•
•

8

Address country-identified priorities
Contribute to World Bank goals
Meet environmental and social standards
Make a positive impact

OVERLAPPING CRISESThe World Bank is responding with impact, speed and scale tohelp member countries
Shocks have had both a deep direct human and economic impact as well as long-term adverse
spillovers on developing countries, threatening to reverse decades of development gains.

© World Bank
© Stpadcharin/
Adobe Stock

Impacts ofclimate change
9© World Bank

© World Bank

Lingering
pandemic effects© World Bank
© World Bank

© Okba Al
Zobani/iStock

Commodity shocks,
food insecurity

Wars andpersistent fragility

EVOLUTION PROCESSTransforming the World Bank to Leverage its Impact
The World Bank and other Multilateral Development Banks (MDBs) are increasingly important in addressing
global challenges such as poverty, shared prosperity, inclusion, resilience, sustainability, and cross-border issues
like climate change, pandemics, and conflict and violence.
The three building blocks of the World Bank’s Evolution Process:10

Vision & Mission

Operating Model

Financial Model

Our new vision is to create a world
free of poverty on a livable planet andour new mission is to end extreme
poverty and boost shared prosperity
on a livable planet by strengthening
inclusion, resilience, andsustainability.

We are introducing
enhancements to ourcountry engagement model,
analytics, financing
instruments, and incentives,to focus more on outputs
rather than inputs.

While maintaining the triple-A credit rating thatallows us to efficiently leverage shareholder
equity, we have been making available moreresources through balance sheet optimization and
we are attracting more funds for increasing ourequity (e.g. through hybrid capital), as well as
more resources for concessional funding.

FOCUS ON GLOBAL CHALLENGES

The World Bank’s shareholders support focus on global goals
There are clear interlinkages between global,
regional, and country development outcomes.
Achieving countries’ development needs
and tackling global challenges are bothurgently needed and mutually reinforcing.

The World Bank is committed to addressing themost pressing global challenges faced by ourmember countries. Our focus areas encompass
a wide range of critical issues:

Video: Global Challenges Explained11

WORLD BANK GROUP’S CLIMATECHANGE ACTION PLAN

Aligning with the Paris Agreement, increasing Climate FinanceWorld Bank is Paris Aligned since July 1, 2023

World Bank Group to Increase Overall Flows to Climate
With at least 50% of climate financing going to adaptation

Definition

Country Circumstances

Provision of support toclients that is consistent
with pathways towards
equitable, sustainable,
low-carbon, and climateresilient development

Paris Agreement gives countries
latitude in the pathways theychoose based on country
circumstances in integratingclimate and development

Adaptation

Mitigation

Ensuring physical risk
mitigation measures are
fully embedded inproject design

Ensure investments support
limiting global warming to well
below 2 degrees, recognizingthat peaking of GHG emissions
will take longer for developing
countries

Learn more about the World Bank’s Climate Change
Action Plan (link)
12

World Bank Group
Climate Finance Target (%):

World Bank Group
Climate Finance ($ billion):

35%

FY21-25 target$38.6B

FY2326%

FY16-20 averagedelivered$21.4B

FY21*Institutions of the World Bank Group that contribute climate benefits include: IBRD, IDA, IFC and MIGA andaveraged together.

CLIMATE ACTION
CUTS ACROSS SECTORS
100% of all IBRD projects are screened for climate risk and impact
92% of all IBRD projects (by #) had climate financing in FY23, representing
41% of all commitments (by dollar value)
45% of all commitments as new Climate Finance target for FY25 (by dollar value)*
Climate Results Cut Across all World Bank Sectors

Energy & Extractives
Agriculture
Urban Resilience & Land
Transport
Water
Environment, Natural Resources & Blue Economy
Social Sustainability & Inclusion

Finance & CompetitivenessGovernance
Trade
Poverty & Equity
Education
Health, Nutrition and Population
Social Protection
Digital Development

13*WBG target© Bru_Greg/iStock

WHY INVEST WITH THE WORLDBANK?

KEY FEATURES OFWORLD BANK BONDS

Decades in capital
market, wide rangeof products•

Issuing debt since 1947;
triple-A rating since 1959•

Fixed income products in
multiple currencies,
structures and maturities

15

SpecialFeatures

Safety•0% Basel II and III risk
weighting minimizes capitalrequirements•

Strong balance sheet as aresult of prudent financial
policies•

Liquid bonds are classified as“Level 1 HQLA” (high quality
liquid assets)•

Funds only for sovereigns/
sovereign-guaranteedprojects

Development
Mandate•

The World Bank’s sustainable
development programs aim toachieve positive social andenvironmental impacts inmember countries

WHY INVEST? SECURITY
AAA/Aaa Credit rating

Conservative Financial Policies

Conservative Risk Management• States only as borrowers• Limits for individual countries• Borrowers are also shareholders• Preferred creditor status• Fixed credit limits• Equity to loans ratio granted only takes
into account the equity paid in• Strict and conservative investment policy

Solid Capital StructureHigh Liquidity• Equity US$64 bn (FY24)• Callable capital US$301 bn (FY24)• 189 government shareholders• 2018 capital increase of US$7.5 bn
increases borrowing capacity• Target liquidity level is 12 months
coverage (US$59 bn in FY24)• Actual liquidity exceeds target(US$79 bn in FY24)• Bond portfolio with securities rated
AAA/AA

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Strictly

BALANCE SHEET STRUCTURE

Key Balance Sheet Items (as of June 30, 2024, in billions US$)

Loans Outstanding (a)US$260Borrowings
US$261

Investments (b)US$83

Equity
US$64

Other US$13

Other US$32

US$357

US$357

AssetsLiabilities & Equity(a) Net of accumulated loan loss provision and deferred loan income(b) Investments and due from banks; of this amount, the liquidity portfolio is US$79 billion
17

WORLD BANK’S STRONG
CREDIT QUALITY
DIVERSIFIEDSHAREHOLDER BASEQUALITY LOAN PORTFOLIO•

Global diversification•

Lending only to sovereign or sovereign-guaranteed projects

PRUDENT RISK MANAGEMENTSUBSTANTIAL
LIQUIDITY

Top 10 Country Exposures for IBRD
(as of June 30, 2024, US$ billions)30••

Borrowing clients are also shareholders; increased
incentive to repay
Preferred creditor treatment – borrowing clients prioritize
financial obligations to the World Bank – recognized byrating agencies and financial market participants

25
20
15
10
5

18

•

Policy of freezing additional lending if payments not on time•Single Borrowing Limits (SBL) for individual countries•

Graduation Discussion Income (GDI) is the level of percapita income of a member country above which
graduation from IBRD starts being discussed.

0$30.9 billion SBL for highly creditworthy countries below the GDI (FY25 limit)$22.2 billion SBL for highly creditworthy countries above the GDI (FY25 limit)

WORLD BANK’S STRONG
CREDIT QUALITY
DIVERSIFIEDSHAREHOLDER BASEQUALITY LOAN PORTFOLIOPRUDENT RISK MANAGEMENT

Total Subscribed Capital
US$ billions as of June 30, 2024

Shareholder Support•

Paid-in Capital
Callable Capital
Subscribed Capital

IBRD bonds are supported by the strength of its balance
sheet and support of its 189 sovereign shareholders

Largest Shareholders•

United States, 16.37%•

Japan, 7.46%•

China, 6.23%•

Germany, 4.43%••

US$22.5
US$300.6
US$323.1

Callable Capital•

The World Bank’s financial policies are designed tominimize the need for a call on capital and key
management tools like the Equity-to-Loans ratio targets
do not take callable capital into account.

France, 4.06%•

No call has ever been made on a callable capital.

United Kingdom, 4.06%•

Callable capital can only be called to satisfy debt
obligations. Shareholders are responsible for the fullamount of their callable capital subscription regardless ofability to fulfill their obligations.

By percentage of total subscription as of June 30, 2024
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SUBSTANTIAL
LIQUIDITYWORLD BANK’S STRONG
CREDIT QUALITY
DIVERSIFIEDSHAREHOLDER BASE•

Conservative financial policies are designed tominimize the need for a call on capital.

•

Key risk management indicators do not factor incallable capital ($301 billion) to determine IBRD’s
risk-bearing capacity.

•

•

20

QUALITY LOAN PORTFOLIOThe key risk tolerance indicator, Equity-to-Loans
Ratio is set at a policy minimum of 19%. As of June30, 2024, the total outstanding amount of loans madeby IBRD was $254 billion to useable equity of $55
billion (E/L Ratio of 21.5%).
FX and interest rate risks managed carefully tominimize risks.

SUBSTANTIAL
LIQUIDITYPRUDENT RISK MANAGEMENT

Equity-to-Loans Ratio(US$ billions; FY24)

71.2%

$254
$301

Callable Capital

Loans(Total Exposure)

21.5%
$55
$20

Useable Equity(Reserves + Paid-In Capital)

WORLD BANK’S STRONG
CREDIT QUALITY
DIVERSIFIEDSHAREHOLDER BASE•••QUALITY LOAN PORTFOLIO

The target liquidity level represents 12 months coverage ascalculated at the beginning of every fiscal year.
Actual liquidity exceeds the estimated liquidity requirement toprovide financial flexibility in the timing of new debt issuance
while meeting obligations. The FY24 target liquidity level was
set at US$59 billion, US$5 billion higher than FY23 Target
Liquidity Level due to higher projected debt service for FY24.
Liquidity portfolio is conservatively managed against strict
guidelines. Eligible investments are highly rated fixed income
securities rated AA- or better for governments and agencies,
and AAA for corporates and ABS.

SUBSTANTIAL
LIQUIDITYPRUDENT RISK MANAGEMENT

Liquid Assets(as of the end of each Fiscal Year) 83
79

70

42
34

34
21

21

66

56

75

79

68
57

59
54

45

33

28
21

79

72

52

51

80

22

25

26

28

28

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Required Liquidity (US$ bn)

21

Actual Liquid Assets (US$ bn)© Anmuelle/iStock

WHAT INVESTMENT PRODUCTS
DOES THE WORLD BANK OFFER?

FUNDING STRATEGY
Meet Investors’ Needs
 Offer a wide range of debt instruments from a AAA/Aaa
issuer, with various characteristics including flexible
structures, size, liquidity and maturities.

 Customize products to meet investor preferences
 Maturities up to 50 years.
 A 0% Basel II and III risk weighting minimizes capitalrequirements.

 Liquid bonds are considered level 1 HQLA (high quality
liquid assets).
 Bonds have ‘green’ or ‘sustainability’ bond tag in Bloomberg
High Execution Standards

 Broad sponsorship from underwriters with solid primaryplacement with a diversified investor base.
 Strong aftermarket spread performance for liquid bonds.
23© World BankFUNDING PROGRAM

Investors have a wide choice of products to choose from

Products

Global & Benchmark
Bonds

Non-Core Currency
Bonds

Structured Notes &Callable Bonds

Capital-at-Risk Notes

Discount Notes

Liquidity

Diversification

Customization

Extra Yield Potential

Cash Management

80
USD
61%

70
EUR
14%

60
50
Structured/ Risk Transfer
Notes

40
30
Other
25%
Fiscal Year 2024
24

Other/ Plain Vanilla Bonds

20

10

Benchmark/ Global Bonds

0
FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24

Note: Trade date FX rates used for converting non-USD currencies to USD equivalents.
Strictly

SUSTAINABLE DEVELOPMENT BONDS
Connecting Investment with Purpose

World Bank bonds provide investors with an opportunity to do well by doing good.

© World Bank

Bond proceeds
support the financing
of green and social
projects

25

World Bank supports
sustainable
development

Environmental& Social Standards

World Bank Sustainable Development Bonds and Green Bonds are:✓ aligned with the Green, Social and Sustainability Bond Principles (ICMA)✓ tagged sustainability bonds on Bloomberg✓ displayed on the Luxembourg Green & Sustainable Exchange

Project Cycle

17 Sustainable
Development Goals

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IBRD USE OF PROCEEDS
Supporting Sustainable Development
in IBRD Member Countries

World Bank Sustainable Development Bonds support the financing of a
combination of green and social, i.e., “sustainable development”, projects,
programs, and activities in IBRD member countries.
Each project is designed intentionally to achieve both positive social andenvironmental impacts and outcomes in line with the World Bank mission to end
extreme poverty and boost prosperity on a livable planet.
The World Bank’s Sustainable Development Bond Framework describes the process
for selecting, evaluating, and reporting on eligible Sustainable Development Projects
and contains descriptions and examples of such eligible projects.
Target Populations: World Bank projects aim to protect and empower vulnerable
groups, including women and girls, the poor, disabled people, and youth to reducepoverty, improve living standards, and raise income and productivity.

5 Key Themes
People: Health, Skills/Education,
Gender, Social Protection, andInclusion
Prosperity: Economic Policies,
Institutions, Prosperity, Finance,
Competition, and Investment
Planet: Agriculture, Water,
Climate, Environment
Infrastructure: Green Transport,
Energy, and Livable Cities
Digital: Infrastructure andServices

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StrictlyGLOBAL BONDS
The World Bank offers global bonds in a variety of currencies and maturities through strategic offerings
designed to meet investor demand.
 Global Bonds provide:─ Investors with liquidity and strong dealer commitment to secondary market support
─ Diversification among triple-A holdings and benefit from a rarity value in the marketplace Characteristics:
─ Issue size is typically US$1-4 billion, or benchmark size for each market; largest benchmark was US$8 billion
─ Maturities generally range between 2-10 years
─ Denominated in a variety of currencies, incl. USD, EUR, GBP, CAD, AUD, NZD

 World Bank bonds are represented in major indices Pricing and other bond details: Bloomberg: IBRD <Govt> <Go> or IBRD <Go>
27

GLOBAL BOND EXAMPLE

AUD 2 Billion 5-year Sustainable Development Bond
On January 3, 2024, the World Bank (IBRD) priced its first benchmark of 2024 – an Australian dollar 2 billion 5-year bond due January
10, 2029. The transaction attracted over 50 orders totaling more than AUD 2.4 billion from investors drawn to IBRD’s high credit quality
while supporting the World Bank’s mission.
Distribution by Geography
Asia
56%

Summary Terms and Conditions
Central Banks / Official
Institutions
37%

Asset
Managers/Insurance/Pension Funds
25%
Australia
22%

Europe/ Middle
East/ Africa
22%

Banks/Bank
Treasuries/Corporates
38%

Net proceeds of the bonds described herein are not committed or earmarked for lending to, or financing of, any
particular projects or programs, and returns on the bonds described herein are not linked to the performance of any
particular project or program.

28

AUD 2 billion 5-year bondDistribution by Investor Type
Issuer Rating:

Aaa/AAA

Maturity:

5-yearTotal Amount:

AUD 2 billion

Settlement
Date:

01/10/2024

Maturity Date:

01/10/2029

Coupon:4.30% p.a. payable semi-annually

Joint Leadmanagers:

Deutsche Bank, JP Morgan, Nomura Internationalplc, RBC Capital Markets

GLOBAL BOND EXAMPLE

USD 6 Billion Dual Tranche Sustainable Development Bonds
On April 3, 2024, the World Bank (IBRD) priced two Sustainable Development Bonds, a USD 3 billion 2-year bond maturing in April 2026 anda USD 3 billion 7-year bond maturing in April 2031. The bonds raised USD 6 billion from investors seeking to support the World Bank’s work
to end extreme poverty and boost prosperity on a livable planet.
Distribution by Geography

Distribution by Investor Type

Summary Terms and Conditions

USD 3 billion 2-year
Americas
34%
Asia
29%

Central Banks /Official Institutions
70%

Europe/Middle
East/Africa
37%

Asset Managers /Pension /Insurance
10%
Bank Treasuries /Banks / Corporates
20%

Americas30%

29

Issuer Rating:Maturity:
Total Amount:

Asia
11%

Bank Treasuries /Banks / Corporates
68%

Central Banks /Official
Institutions
23%

Asset Managers /Pension / Insurance
9%

Net proceeds of the bonds described herein are not committed or earmarked for lending to, or financing of, any particular projects
or programs, and returns on the bonds described herein are not linked to the performance of any particular project or program.

Aaa/AAA
2-year7-yearUSD 3 billion

USD 3 billion

Settlement
Date:
Maturity Date:

USD 3 billion 7-year

Europe/Middle
East/Africa
59%

USD 2.7 billion 2-year and 7-year Bonds

Coupon:Leads:

04/10/2024
04/10/2026

04/10/2031

4.75% p.a., payablesemi-annually

4.50% p.a., payablesemi-annually

Merrill Lynch International, HSBC Bank, J.P.
Morgan Securities, Wells Fargo Securities, LLC

USD 6 billion Dual Tranche Sustainable Development Bonds

GLOBAL BOND EXAMPLE

CAD 1.4 Billion 5-year Sustainable Development Bond
On January 3, 2024, the World Bank (IBRD) priced a new 5-year CAD 1.4 billion benchmark that matures in January 2029.

Distribution by Geography

CAD 1.4 billion 5-year bondDistribution by Investor Type

Summary Terms and Conditions
Americas
48%

Asia
34%

Central Banks / Official
Institutions
55%

Issuer Rating:

Aaa/AAA

Maturity:

5-yearTotal Amount:
Asset
Managers/Insurance/Pension Funds
11%
Europe/ Middle
East/ Africa
18%

Banks/Bank
Treasuries/Corporates
34%

Net proceeds of the bonds described herein are not committed or earmarked for lending to, or financing of, any
particular projects or programs, and returns on the bonds described herein are not linked to the performance of any
particular project or program.

30

CAD 1.4 billion

Settlement
Date:

01/12/2024

Maturity Date:

01/12/2029

Coupon:3.50% p.a.

Joint Leadmanagers:

CIBC, RBC Capital Markets, National Bank
Financial Inc., TD Securities

GLOBAL BOND EXAMPLE

GBP 1.5 billion 5-year Sustainable Development Bond
On January 4, 2024, the World Bank (IBRD) priced a 5-year British pound sterling (GBP) benchmark bond due October 2028. The
Sustainable Development Bond raised an impressive size of GBP 1.5 billion from investors to support the financing of the WorldBank’s work to fund sustainable development solutions in its member countries.
Distribution by Geography
Europe/Middle
East
6%

Americas3%

Summary Terms and Conditions

Central Banks / Official
Institutions
53%
Asia
32%

Issuer Rating:

Aaa/AAA

Maturity:

5-yearTotal Amount:
Asset Managers/ Pension /Insurance
22%

UnitedKingdom
59%
Bank Treasuries /Banks /
Corporates
25%

Net proceeds of the bonds described herein are not committed or earmarked for lending to, or financing of, any
particular projects or programs, and returns on the bonds described herein are not linked to the performance of any
particular project or program.

31

GBP 1.5 billion 5-year Bond

Distribution by Investor Type

GBP 1.5 billion

Settlement
Date:

01/11/2024

Maturity Date:

10/02/2028

Coupon:3.875% p.a.

Leads:

Citigroup, NatWest Markets, Santander and TD
Securities

GBP 1.5 billion 5-year Global Benchmark BondGLOBAL BOND EXAMPLE

EUR 3 billion 10-year Sustainable Development BondOn February 6, 2024, the World Bank (IBRD) priced a EUR 3 billion 10-year Sustainable Development Bond. This transaction attracted
over 100 orders totaling Euro 4.7 billion from European and global investors seeking high credit quality and an investment that
supports sustainable development at the longer end of the EUR curve.
Distribution by Geography

EUR 3 billion 10-year Bond

Distribution by Investor Type

Summary Terms and Conditions
Other
13%

Germany
16%

Central Banks/ Official
Institutions
17%

France24%

Rest of Europe
47%

Banks/Bank
Treasuries/Corporates
58%

Asset
Managers/Insurance/
Pension Funds
25%

Net proceeds of the bonds described herein are not committed or earmarked for lending to, or financing of, any
particular projects or programs, and returns on the bonds described herein are not linked to the performance of any
particular project or program.

32

Issuer Rating:

Aaa/AAA

Maturity:

10-year

Total Amount:

EUR 3 billion

Settlement
Date:

02/14/2024

Maturity Date:

02/14/2034

Coupon:2.9% p.a.

Leads:BNP Paribas, NatWest Markets, Nomura, TD
Securities

EUR 3 billion 10-year Sustainable Development BondGLOBAL BOND EXAMPLE
SOFR-Linked Floating Rate Bonds

On July 17, 2024, the World Bank (IBRD) priced a dual tranche transaction consisting of USD 2 billion and USD 0.7 billion tranches. Both
Sustainable Development Bonds are linked to the Secured Overnight Financing Rate (SOFR). The transaction attracted over 110 orders
totaling USD 4.7 billion from a diverse set of investors seeking a high credit quality investment while supporting sustainable development.
Distribution by Geography

Distribution by Investor Type

Summary Terms and Conditions

USD 2 billion 3-year
Americas41%
Europe/Middle
East/Africa
56%

Asia
3%

Bank Treasuries /Banks / Corporates
62%

Central Banks /Official
Institutions
18%

Maturity:

Central Banks /Official
Institutions
1%

Americas21%Bank Treasuries /Banks / Corporates
97%

Asset Managers /Pension / Insurance2%

Net proceeds of the bonds described herein are not committed or earmarked for lending to, or financing of, any particular projects
or programs, and returns on the bonds described herein are not linked to the performance of any particular project or program.

Aaa/AAA
3-year7-year

USD 2 billion

USD 0.7 billion

Settlement
Date:
Maturity Date:

Asia
8%

33

Issuer Rating:Total Amount:
Asset Managers /Pension /Insurance
20%

USD 0.7 billion 7-year
Europe/Middle
East/Africa
71%

USD 2.7 billion 3-year and 7-year Bonds

Coupon:Leads:

07/24/2024
06/15/2027

02/11/2031

Compounded Daily
SOFR + 27 basis
pointsCompounded Daily
SOFR + 37 basis
pointsHSBC Bank, Scotia Bank, and Wells Fargo
Securities

USD 2.7 billion SOFR-Linked Floating Rate BondDISCOUNT NOTES The World Bank offers flexible and customized short-term debt
instruments through its USD Discount Notes Program using
simple documentation (Offering Circular).
 Discount Notes are offered in the United States and Eurodollar
markets.
 Rates for World Bank Discount Notes are posted on
Bloomberg's “ADN” page under the World Bank option(“WBDN”).
 Discount Notes characteristics:• maturities of 397 days (13 months ) or less• aggregate face amounts of US$50,000 and higher per maturity
date

34

BUYBACK PROGRAM
 The World Bank buys back its own bonds through dealers
on a reverse enquiry basis
 Program is designed to offer backstop liquidity to investors
and covers vanilla and structured IBRD notes, as well as
benchmarks
 Repurchased notes are retired from the market
 The program has been operational 20+ years, including the
2008-2009 financial crisis and the 2020 COVID-19 crisis
with average volumes of roughly US$1 billion annually Confidential execution as requested
 Execution remains at the discretion of IBRD
© World BankWorld Bank Headquarters, Washington, DC

35

CATASTROPHE BOND EXAMPLE

Provides Insurance to Mexico for Earthquake Events andAtlantic storms
On April 17, 2024, the World Bank (IBRD) issued three catastrophe bond that provide USD 420 million of
insurance against earthquakes and named Atlantic storms to the Government of Mexico for four years.
The cat bonds replace and increase by USD 60 million Mexico’s
USD 420 million 4-year Cat Bondprevious cat bonds for these natural disasters.
Summary Terms and Conditions
Distribution by Geography

Bermuda
10%

Asia
2%

Europe44%

Issuer Rating:

Aaa/AAA

Distribution by Investor Type

Maturity:

4-yearInsurer /Reinsurer
7%

Total Amount:

USD 420 million

Settlement Date:

04/17/2024

Maturity Date:

04/24/2028

Bond Coupon:

Compounded SOFR +Funding Margin + Risk Margin

Risk Margin(risk period):

Class A: 4%.
Class B: 11%
Class C: 13.5%

Funding Margin:+0.022% p.a.

Covered Perils:

Earthquakes (Class A + B)
and Atlantic storms (Class C)

Trigger:Parametric, per occurrence

Leads:Aon Securities, GC Securities,
Munich Re

Asset
Management
21%
Pension
Fund
7%

North
America44%
ILS Fund65%
Net proceeds of the bonds described herein are not committed or earmarked for lending to, or
financing of, any particular projects or programs, and returns on the bonds described herein
are not linked to the performance of any particular project or program."

Mexico Cat Bond Press Release36© Macbeth Alfonso Gomez | iStockOUTCOME BOND EXAMPLE

Wildlife Conservation Bond to Protect Black Rhinos
and Support Local Communities in South Africa
On March 31, 2022, the World Bank (IBRD) issued the first Wildlife Conservation Bond, a principal protected
outcome bond, that channels additional private capital for conservation outcomes.
• Investors foregone regular coupons fundconservation investment in two parks inSouth Africa, while also providing
environmental and social benefits to local
communities.
• In addition to return of principal and asmall guaranteed return, investors
potentially receive a conservation
success payment at maturity (funded by
the Global Environment Facility) based on
rhino population growth rates.
• Nuveen was the lead investor in thetransaction which included otherinstitutional investors and individual
investors from both Credit Suisse andCiti private banking.
WCB Press Release37

USD 150 million 5-year Bond
Summary Terms and Conditions
Rating:AAAp

Maturity:

5-yearTotal Amount:

USD 150 million

Settlement Date:

03/31/2022

Maturity Date:

03/31/2027

Issue Price:

94.84%

Conservation
Investment
Payment:

Issuer will make payments totaling ZAR 152
million to the Park Managers to finance rhinoconservation activities.

Conservation
Success Payment:

Paid to investors at maturity based on rhino
growth rates in two Parks.
Maximum payment is US$13.76 million

Sole Structurer:

Credit Suisse

Bookrunners:

Credit Suisse and Citibank, NA

Net proceeds of the bonds described herein are not committed or earmarked for lending to, or financing of, any particular projects
or programs, and returns on the bonds described herein are not linked to the performance of any particular project or program.

OUTCOME BOND EXAMPLE

Helping Communities Remove and Recycle Plastic Waste
On January 24, 2024, the World Bank (IBRD) issued a Plastic Waste Reduction-Linked Bond, a principal
protected outcome bond, that channels private capital to a project with positive climate and development impacts.
• Investors forego regular coupon payments to provide
up-front financing for projects that aim to reduceand recycle plastic waste in vulnerable
communities in Ghana and Indonesia.

• Projects help to reduce plastic pollution, create
improvements in local pollution and air quality, reduce
associated health impacts, and create jobs inmarginalized communities.
• In addition to return of principal and a small
guaranteed return, investors receive variable coupons
linked to Plastic Waste Collection Credits, Plastic
Waste Recycling Credits and Voluntary Carbon
Units expected to be generated by two projects.
• Investors include: Velliv Pension, Skandia, Mackenzie
Investments, T. Rowe Price, Muzinich & Co

USD 100 million 7-year Bond
Summary Terms and Conditions

Rating:AAAp

Maturity:

7-yearTotal Amount:

USD 100 million

SettlementDate:

01/31/2024

Maturity Date:

01/31/2031

Issue Price:

100%

Plastic & VCULinked Interest
Payment:

Linked to the number of Plastic Credits
and Verified Carbon Units (VCUs)
issued from the projects, each subject
to a cumulative ceiling

Minimum
coupon:Lead Manager:

1.75% per Specified Denomination

Citibank

Plastic Waste Reduction Bond Press Release
Net proceeds of the bonds described herein are not committed or earmarked for lending to, or financing of, any particular World Bank projects or programs. Payments

38 on the bonds are not funded by any particular World Bank project or program.

© Dirk Daniel Mann/iStockHOW IS THE WORLD BANKENGAGING WITH INVESTORSON THE SDGs?

BUILDING SUSTAINABLE
CAPITAL MARKETSTheWorld Bank’s first green bondcatalyzed the green bondmarket and spearheaded
disclosure and impact
reporting standards for green
and other sustainable assets.

A revolution sparked by green bonds has the potential
to drive more data-driven sustainable/ impact investing.
The green bond model for project selection, second
party opinion, and impact reporting has expanded toWorld Bank Sustainable Development Bonds.

Sustainable Development Bonds
Today, most World Bank bonds arelabeled as Sustainable Development
Bonds.
The Sustainable Development Bondlabel highlights how proceeds support
the financing of projects with both green
and social goals and emphasizes theholistic approach that the World Bank
takes to mainstream climate action in
all operations.

40

A global development institution focused on the
reduction of poverty and inequality.
Issuer of sustainable development bonds andgreen bonds.
Engagement with investors and others onsustainable and impact investments.
Partnering with others to:•••leverage our issuance and development experience
increase awareness for thematic investment andsustainable capital flows
support transparency and data availability as a global
public good.
Strictly

PIONEERING THE
GREEN BOND MARKET

The World Bank’s first green bond catalyzed the green bond market and spearheaded
disclosure and impact reporting standards for green and other sustainable assets.

Green bonds carry the same financial terms and risk as other World Bank bonds.



The World Bank is advising member countries on green finance and green bondissuance, e.g., through a guide for a national taxonomy.

© World Bank

10,950,000 tons

6,0200,000 tons

1,825,000 tons

9,200,000 GWh

of municipal wastewatercollected and treated annually in
Lebanonof C02 eq emissions reduced
due to sustainable agricultural
practices in India*

Of waste reduced, reused or
recycled annually in Pakistan

in annual
energy savings acrossGreen Bond project portfolio

Result indicators reflect expected results of selected active Green Bond projects in FY23. Please see lmpact Report 2023 for further information on the indicators.
*Results aggregated across several projects reporting on the same indicator.

41

Examples provided herein are for illustrative purposes only and no assurance can be provided that disbursements for projects with these specific characteristics will be made in the future. Net proceeds of thebonds described herein are not committed or earmarked for lending to, or financing of, any particular projects or programs. Payments on the bonds described herein are not funded by any project or program.

MEETING INVESTOR DEMAND
For Sustainable Investment Products All World Bank bonds aim to achieve positive social andenvironmental impact in line with the SDGs.

 Investors are factoring environmental and social risks andsustainability considerations into decision-making.
 World Bank bonds are natural fit for investors seeking
positive impact and thematic investment.

 Investors are focusing investments on special themes andthe SDGs like climate action, gender equality, good health andwell-being, equitable social services, and sustainable transport.
 World Bank Treasury is cultivating a long-term partnershipwith the private sector driving growth in green andsustainability bonds and innovation to mobilize financing forsustainable development.
42

SUSTAINABLE
DEVELOPMENTSUSTAINABLE DEVELOPMENT BONDSIBRD issues two types of labeled bonds

World Bank
Sustainable
Development
Bondsaligned with
Sustainability
Bond Guidelines
published by
ICMA

43

World BankGreen Bondsaligned with
Green Bond
Principles
published by
ICMAGREEN BONDS
FY23 GREEN BOND PROJECT RESULTS

Read the 2023 World Bank (IBRD) Impact Report

44

SUSTAINABLE DEVELOPMENT BONDS
Holistic Approach Uses SDGs as a Framework

690 projects
supported$38.6 billion in
lendingcommitted
Read the 2023 World Bank(IBRD) Impact Report45

WORLD BANK SUMMARY The World Bank’s purpose is to end extreme poverty andpromote shared prosperity on a livable planet.

 World Bank bonds fund sustainable development activities.
 AAA/Aaa rating is based on its strong balance sheet andcapital, conservative financial policies and risk management,
and support from 189 member countries.

 Wide range of products ranging from benchmark bonds totailor-made notes designed to suit specific investor needs.
 All bonds are labeled as ‘sustainability’ or ‘green’ bonds
designed to achieve positive impact.

 Outcome-based structured bonds allow investors to take onother risks for additional impact.

46

© World BankANNEX: PROJECT STORIES
Disclaimer: Examples of projects herein are for illustrative purposes only and no assurance can be provided that disbursementsfor projects with these specific characteristics will be made by IBRD anytime in the future. Net proceeds of IBRD securities are
not committed or earmarked for lending to, or financing of, any particular projects or programs, and returns on IBRD securities
are not linked to the performance of any particular project or program.

COLOMBIA

Access and Quality in Higher Education
Development Challenge: The participation of young people from socioeconomicallydisadvantaged backgrounds in tertiary education in Colombia is very low. In 2014,
only 10% of young people in the poorest quintile enrolled in a higher education
program, compared to 59% of the richest quintile. That same year, only 13% of therural population enrolled in a tertiary education program, as compared to 60% in themain cities. Half of the students who enter tertiary education drop out before finishing
their studies.
Purpose: Improve the quality of tertiary education in participating institutions andincrease enrollment of students from disadvantaged socioeconomic backgrounds inquality programs. The project provides financing for students to attend tertiary andpostgraduate education through student loans and scholarships. The project also
provides financing for institutions to carry out quality improvements to obtainaccreditation through competitive research grants and loans.

© World BankFor more information:
https://projects.worldbank.org/en/projects-operations/projectdetail/P160446
48

Expected Results (include):• 1,222,876 students from disadvantaged backgrounds enrolled in tertiary education• 46,080 students from low socioeconomic groups who obtain a loan
• 322,000 students benefiting from direct interventions to enhance learning• 6.2% of new student loans given to victims of violence; 7.5% to indigenous, afroColombians, and Roma people; 7% of loans to new students in 'remote areas’
IBRD Financing: $160 million
Closing: 2025

EGYPT

Greater Cairo Air Pollution Management andClimate Change Project
Development Challenge: Despite significant improvements in air quality in recent
years, Greater Cairo’s air pollution levels far exceed international standards. Pollution
management is key to providing safe living conditions for communities while reducing
the health burden, fiscal strain, and economic costs from environmental degradation.
Air pollution and adverse climate impacts threaten the longevity of Egypt’s draw for
tourism (a sector that contributes about 12% to GDP) by degrading Egypt’s richcultural heritage and creating conditions that discourage tourists from visiting
altogether.
Purpose: Reduce air and climate emissions from critical sectors and increase
resilience to air pollution in Greater Cairo. In response to COVID-19, the project isworking to improve healthcare waste management systems and introduce prevention
measures in municipal waste operations. This will focus on under-served hospitals toprovide waste sterilization equipment and personal protective gear, alongside theprovision of technical assistance and training on the safe handling, transportation anddisposal of healthcare waste.

© World BankFor more information:
https://projects.worldbank.org/en/projects-operations/projectdetail/P172548
49

Expected Results (include):• Increase the number of women employed in the solid waste chain by 10%,
following training and capacity building• Reduce GHG emissions from public buses by 23%• Reduce GHG emissions from municipal solid waste by 30%
IBRD Financing: $200 million
Closing: 2026

GABON

COVID-19 Strategic Preparedness andResponse
Development Challenge: Although Gabon has two laboratories capable ofdiagnosing COVID-19, samples must be transported either by air, facing logisticalconstraints, or by road, which is far from the capital. These two centers do not haveenough capacity to provide the laboratory testing Gabon needs during the COVID-19
pandemic and financial support is needed for laboratory equipment and acquisition of
kits and laboratory reagents.
Purpose: Prevent, detect, and respond to the threat posed by COVID-19 andstrengthen national systems for public health preparedness in Gabon. The project
received additional financing to support the country’s National Vaccination and
Deployment Plan, to enable affordable and equitable access to COVID-19 vaccines,
providing 945,255 doses.
Expected Results (include):••© World BankFor more information:
https://projects.worldbank.org/en/projects-operations/projectdetail/P173927
50

•
•
•

23 laboratories provided with COVID-19 diagnostic equipment, test kits, andreagents
Increase the percentage of health staff equipped with appropriate PPE forinfection prevention and control to 80%
Provide 26 ambulances to transport COVID-19 patients
60% of population vaccinated, of which 50% are womenDistribute gender sensitive educational communication materials on COVID-19
vaccines

IBRD Financing: $21 million
Closing: 2025

GUATEMALA

Crecer Sano: Guatemala Nutrition and Health
Project
Development Challenge: Guatemala faces a crisis as a result of the spread of COVID19, both in terms of public health and the economy. COVID-19 has worsened thecountry’s economic situation, leading to a rise in malnutrition along with food shortages
and an increase in food prices. Approximately 47% of Guatemalan children suffer fromstunting – one of the highest rates in the world. The capacity of the country’s healthinfrastructure to respond to the crisis is limited due to high demand and insufficient humanresources, equipment, and financing.
Purpose: Improve selected practices, services, and behaviors known to be key
determinants of chronic malnutrition (with an emphasis on the first 1,000 days of life) and
respond to the threat posed by COVID-19, in selected intervention areas. In response to
the COVID-19 pandemic, the project was restructured to reallocate $20 million of original
project financing to increase capacity for COVID-19 testing and expand temporary andmobile medical pavilions to cope with the increasing demand for health services.
Expected Results (include):• 680,000 people reached with essential health, nutrition, and population services
including:─ 400,000 children under 5 years old receiving immunizations
─ 280,000 women and children under 5 years old receiving basic nutrition services© World BankFor more information:
http://projects.worldbank.org/P159213?lang=en
51••

Train 5,000 health staff in COVID-19 infection prevention and control
Build and equip 2 temporary hospitals for COVID-19 treatment

IBRD Financing: $100 million
Closing: 2026

INDIA

Innovate for Inclusiveness
Development Challenge: While India is recognized as a leading global manufacturerof high-quality generic drugs, industry gaps and market failures constrain its
innovation capabilities, limiting its competitiveness and ability to address its disease
burden. Diseases that disproportionately affect low- and middle-income countries arelargely ignored as companies tend to allocate resources to high-profit markets,
leading to a growing concern of getting affordable healthcare in India.
Purpose: Facilitate innovation in biopharmaceutical products and medical devices
that address public health priorities. Strengthen and accelerate the pilot-to-market
innovation ecosystem for low-cost vaccines, biopharmaceuticals, diagnostics, andmedical devices funding for the government of India’s Biotechnology Industry
Research Assistance Program (BIRAC). The project will provide grant funding tocompanies, research and academic institutions, and practitioners to support earlystage bio-manufacturing, clinical development, training, and technology transfer.
Expected Results (include):•© World BankFor more information:
https://projects.worldbank.org/en/projects-operations/projectdetail/P156241?lang=en
52

•
•
•

50 products addressing public health priorities advance at least one step on the
product development pathway
23 technologies licensed for manufacturing or commercialization
14 international publications
6,295 people trained

IBRD Financing: $125 million
Closing: 2025

ANGOLA

Climate Resilience and Water Security-RECLIMA
Development Challenge: In Angola, only 57% of the population has access to basic
water and sanitation services, with a significant divide between urban and rural areas.
Only 42% of households have access to piped water, in rural areas this number drops
to 8%. Urban informal settlements, home to half of the urban population, arefrequently exposed to flooding. Conversely, rural communities lack access toadequate water and sanitation services and face intensified water shortages due todroughts. Women in rural areas are disproportionately affected by water-fetching
duties, the lack of water and sanitation services, and the impacts of climate change.
Purpose: The project aims to improve access to water by financing the expansion,
rehabilitation, and maintenance of water supply infrastructure in urban and rural
areas. It also supports institutional development activities to increase water security
and climate resilience.

© USAID

For more information:
https://projects.worldbank.org/en/projects-operations/projectdetail/P177004
53

Expected Results (include):• 550,000 people in urban and peri-urban areas provided with access to improved
water services• 310,000 people in rural areas provided with access to a reliable water source• 12,388,000 m3/year of groundwater resources newly mobilized• 110,000 new piped household water connections

IBRD Financing: $300 million
Closing: 2028

SERBIA

Enabling Digital Governance Project
Development Challenge: The Serbian government wanted to digitalize services toquickly respond to the COVID-19 crisis and prepare for the second wave of thepandemic. While Serbia has placed a strong emphasis on e-government services,
efforts have been uncoordinated and only partially funded. Many registries andinformation data bases are fragmented, imposing an additional burden in terms oftime and costs to citizens and businesses when engaging with the government.
Purpose: Improve access to and efficiency of online government services. Twoactivities have been introduced in response to the COVID-19 pandemic: (1) abusiness continuity assessment for government institutions to help guide the transition
to providing digital services, and (2) the development of software solutions to enablemobile access to government services.
Expected Results (include):• Increase the number of government services digitized and available online to 30,
from a baseline of 4
• Provide 2,000,000 people with access to online services• Increase user satisfaction with online services by 50%© World BankIBRD Financing: $50 million

Closing: 2026
For more information:
https://projects.worldbank.org/en/projects-operations/projectdetail/P164824
54

TURKEY

Energy Efficiency in Public Buildings
Development Challenge: Energy efficiency is critical for Turkey to sustain its
economic growth while meeting its commitments for climate change andenvironmental sustainability. As energy use per capita in Turkey rises, its energy
intensity is expected to grow. This high intensity negatively impacts energy security as
Turkey’s energy imports account for almost 19% of the country’s total imports. It also
has a negative impact on the environment, with the energy sector accounting for72.2% of the country’s greenhouse gas (GHG) emissions.
Purpose: Reduce energy use in central government buildings and inform thedevelopment of sustainable financing mechanisms to support a scaled-up, national
program for energy efficiency in public buildings. The project supports the renovationof central government and central-government affiliated buildings (i.e., public buildings
including schools and hospitals); and strengthens technical assistance to support
project implementation to ensure its sustainability and scale-up.

© World BankFor more information:
https://projects.worldbank.org/en/projects-operations/projectdetail/P162762
55

Expected Results (include):• 315 GWh of annual energy savings• 225,000 tons of CO2 equivalent reduced annually• 620 buildings commissioned• US$18,000,000 of energy costs savings annually
IBRD Financing: $150 million
Closing: 2025

CONTACT US
Internet:
Phone:
Fax:
Email:
Address:

Pricing Sources
Bloomberg
Discount Notes

https://treasury.worldbank.org/+1 202 477 2880
+1 202 477 8355
debtsecurities@worldbank.org
1818 H Street N.W. MSN C7-710
Washington, DC 20433, USA

IBRD <Govt> <Go> or IBRD <Go>WBDN <Go>

56
Strictly

THE WORLD BANK IBRD
Acknowledgements and Disclaimers© World Bank

•
•

•

•
•
•

•

57

Photos, graphics and content © The World Bank and as noted. Cover photo credits (from left to right): © Eefje Verbeek/iStock, © World Bank, © pespiero/iStock.
This presentation has been prepared by the World Bank (International Bank for Reconstruction and Development, IBRD) for information purposes only, and the IBRD makes no representation,
warranty or assurance of any kind, express or implied, as to the accuracy or completeness of any of the information contained herein.
No Offer or Solicitation Regarding Securities. This presentation may include information relating to certain IBRD securities. Any such information is provided only for general informational purposes anddoes not constitute an offer to sell or a solicitation of an offer to buy any IBRD securities. All information relating to securities should be read in conjunction with the appropriate prospectus and any
applicable supplement and Final Terms thereto, including the description of the risks with respect to an investment in such securities, which may be substantial and include the loss of principal. The
securities mentioned herein may not be eligible for sale in certain jurisdictions or to certain persons.
Consult with Advisors. Investors considering purchasing an IBRD security should consult their own financial and legal advisors for information about such security, the risks and investment
considerations arising from an investment in such security, the appropriate tools to analyze such investment, and the suitability of such investment to each investor's particular circumstances.
No Guarantee as to Financial Results. IBRD does not warrant, guarantee or make any representation or warranties whatsoever, express or implied, or assumes any liability to investors regarding thefinancial results of the IBRD securities described herein.
Each recipient of this presentation is deemed to acknowledge that this presentation is a proprietary document of IBRD and by receipt hereof agrees to treat it as confidential and not disclose it, or
permit disclosure of it, to third parties without the prior written consent of the IBRD. All content (including, without limitation, the graphics, icons, and overall appearance of the presentation and its
content) are the property of the IBRD. The IBRD does not waive any of its proprietary rights therein including, but not limited to, copyrights, trademarks and other intellectual property rights.
This presentation includes forward-looking statements. These forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, andunderlying assumptions and other statements, which are other than statements of historical facts. The words "believe," "expect," "anticipate," "intends," "estimate," "forecast," "project," "will," "may,""should" and similar expressions identify forward-looking statements. The forward-looking statements in this presentation are based upon various assumptions, many of which are based, in turn, uponfurther assumptions, including, without limitation, management's examination of historical operating trends, data contained in IBRD’s records and other data available from third parties. Although IBRD
believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are
beyond its control, and IBRD may not achieve or accomplish these expectations, beliefs or projections. Neither IBRD, nor any of its members, directors, officers, agents, employees or advisers intend
or have any duty or obligation to supplement, amend, update or revise any of the forward-looking statements contained in this presentation.