WASHINGTON, D.C., July 16, 2026 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced a USD 1.5 billion Sustainable Development Bond linked to the Secured Overnight Financing Rate (SOFR Index), maturing on July 27, 2033.
The transaction attracted 70 orders with an order book of over USD 3.5 billion from a diverse set of investors seeking a high credit quality investment while supporting sustainable development. The 7-year SOFR-index linked note pays a coupon of Compounded SOFR +38 basis points (bps).
BofA Securities, National Bank of Canada Financial Inc, Scotiabank, and TD Securities are the lead managers for the transaction. The bond will be listed on the Luxembourg Stock Exchange.
“The strong investor response to this SOFR benchmark is a great start to the World Bank’s US dollar benchmark issuance for the fiscal year,” said Jorge Familiar, Vice President and Treasurer, World Bank Group. “The broad investor demand for this floating rate benchmark reflects their recognition of the World Bank Group’s mission to drive sustainable development, while also offering them a broad range of opportunities at multiple points along the yield curve.”
“Congratulations to the World Bank team on another successful Floating Rate Note (FRN) outing. The World Bank’s regular and diverse issuance across such an extensive maturity spectrum has established its name as a key benchmark for both investors and issuing peers. BofA was delighted to be part of this transaction that attracted such high-quality demand,” said Adrien de Naurois, Co-head of EMEA DCM, BofA Securities, Merrill Lynch International.
“Congratulations to the World Bank on the successful execution of its most recent USD 7-year SOFR-linked FRN, which attracted strong international demand. The World Bank continues to be a market leader, and the transaction was well received by investors seeking assets with sustainable development positive impact. The NBF team was thrilled to partner with the World Bank on this exceptional transaction,” said Scott Graham, Managing Director & Head, International Government Finance, NBC Paris.
“Scotiabank congratulates the World Bank on the successful execution of its USD 1.5 billion 7-year SOFR-Linked FRN, the first benchmark USD transaction of its new fiscal year. The high-quality, globally diversified orderbook underscores the World Bank’s exceptional credit strength and the strong support that it has from investors worldwide. We were pleased to support this important transaction,” said Gary Israel, Managing Director, Sovereign, Supranational, and Agency (SSA) Debt Capital Markets (DCM), Scotiabank.
“The World Bank has once again demonstrated its ability to execute successfully in a unique segment of the SOFR curve. Achieving this level of demand and pricing performance is a significant accomplishment, and TD is pleased to have joint led the transaction,” said Paul Eustace, Global Head of SSAs, TD Securities.
READ MORE: https://www.worldbank.org/en/news/press-release/2026/07/16/world-bank-kicks-off-fiscal-year-2027-usd-funding-with-usd-1-5-billion-7-year-sofr-index-linked-bond
