World Bank’s IDA Prices $3 Billion Bond After SEC Exemption
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World Bank’s IDA Raises $3 Billion in First Bond After SEC Waiver
Overview of the IDA Bond Issuance
Bond Pricing and Demand
NEW YORK, Sept 15 (Reuters) – The World Bank’s International Development Association priced a $3 billion bond from an order book of nearly $8 billion, a source familiar with the transaction said on Tuesday.
Bond Details
• The Global Sustainable Development Bond is scheduled to settle on September 25, 2026, and mature on September 25, 2031. It carries a 4.875% coupon, the source said
Lead Managers
• The transaction was led by Bank of America, BMO Capital Markets, Citi and JPMorgan, according to the source
Significance of the SEC Waiver
First U.S. Dollar Issuance Post-Exemption
• The deal marks IDA’s first U.S. dollar issuance since it received an exemption from U.S. Securities and Exchange Commission filing requirements
Alignment with Other Multilateral Banks
• The SEC exemption brings IDA in line with other multilateral development banks, allowing the World Bank’s concessional lending arm to raise funds in U.S. markets more cheaply and efficiently
Benefits of the SEC Exemption
• An SEC exemption allows an issuer’s bonds to be treated as exempt securities under U.S. securities laws, reducing registration requirements and making it easier and cheaper to access U.S. capital markets.
(Reporting by Karin Strohecker and Rodrigo Campos; Editing by Edmund Klamann)
