KUALA LUMPUR (April 10): The World Bank has priced its inaugural 15-year benchmark bond denominated in euro (€) yesterday, raising €600 million.

In a statement on its website yesterday, the World Bank said this was the first public €-denominated benchmark issued by the World Bank this calendar year and the longest maturity ever offered by the World Bank in the public € market.

it said the transaction was well-received, with a final orderbook in excess of €750 million, driven by investors seeking long-dated, high-grade investment opportunities.

The World Bank said investors were keen to diversify their portfolio and take advantage of the rare opportunity to buy a World Bank security in the EUR market.

It said the joint-lead managers for this global bond were Bank of America Merrill Lynch and Goldman Sachs International.

This 15-year € benchmark carries an annual coupon of 0.5% and matures on April 16, 2030.  

It offers investors a yield of 0.526%, which is equivalent to a spread of 18.5 basis points over the 6.250% German Bunds due January 4, 2030.

World Bank director and global head of capital markets, Doris Herrera-Pol said the exercise demonstrated the strong confidence European investors had in the quality of the World Bank’s credit and the appreciation for its purpose, to invest in sustainable development and achieve a positive social impact.