World Bank Secures €6 Billion Order Book for €3 Billion Euro Bond

The International Bank for Reconstruction and Development (IBRD) priced the bond at 99.775% with a 3.450% coupon, resulting in a yield of 3.477%—a spread of 25.5 basis points over German Bunds. This issuance marks the institution's first euro benchmark since July 2025 and its initial euro transaction for the current fiscal year. The capital raised will support the IBRD’s diverse development mandate, funding projects focused on poverty reduction, infrastructure, and resilience in creditworthy countries.

European buyers dominated the allocation, claiming 81% of the total, followed by investors from the Americas at 10% and Asia at 9%. Banks and bank treasuries formed the largest contingent of buyers, taking 55% of the offering, while central banks and official institutions secured 29%. The remaining 16% went to asset managers and pension funds. Joint lead managers for the deal included Credit Agricole, Citi, J.P. Morgan, and Goldman Sachs, who noted the strength of the order book as a testament to the World Bank’s credit standing, currently rated AAA by S&P and Aaa by Moody’s. The bond will be listed on the Luxembourg Stock Exchange with settlement set for September 2, 2026.