World Bank’s International Development Association on Tuesday launched a 1.5 billion-dollar bond, the first in its nearly 60-year history.
The World Bank Group President, Jim Yong Kim, said the launch of IDA’s borrowing programme in the global capital markets, would address some of its most pressing development issues.
Investors around the globe seized the opportunity to invest in the bond.
Kim said: “Today’s bond issue will allow IDA to tap into the power of capital markets to tackle some of the world’s biggest challenges and help millions lift themselves out of poverty.
“While it is a new bond issuer, IDA is an established institution, with an almost 60-year track record as the leading source of development finance and expertise for some of the fastest growing economies in the world.
“As a borrower, it leverages its unrivalled capital position as the largest equity of any multilateral development bank with decades of strong donor support, a solid track record of repayments and prudent financial management.”
Also, the World Bank Group’s Chief Financial Officer, Joaquim Levy, said the bond issuance would open new investment opportunities globally.
Levy said: “By leveraging the balance sheet and the significant achievements of IDA for the first time, we are delivering shareholders value for money, opening new investment opportunities in the fixed income space.
“Most importantly, scaling up IDA’s ability to have an impact where it makes the greatest difference.”
Similarly, World Bank’s Vice President, Nigeria’s Arunma Oteh, said the bank would continue to develop the capital market.
Oteh said: “IDA received a resounding response from the market for its debut issuance.
“Investors globally seized the unique opportunity to be the first to invest in IDA’s triple-A rated bond and make a positive impact in the lives of hundreds of millions of people around the globe.
“I want to thank investors, lead managers and all the bankers for their personal engagement and commitment to making IDA debut such a fantastic success.
“As we grow IDA’s borrowing programme, we will continue to ensure a strong financial condition and prudent financial and operational management for IDA.”