London Stock Exchange welcomes the International Development Association Celebrating the inaugural GPB Benchmark Bond
The International Development Association (IDA) is one of the largest and most effective platforms for fighting extreme poverty in the world’s poorest countries. There are currently over seventy such countries, home to about two-thirds of the extreme poor—almost 500 million people.
IDA focuses on providing development financing and cross-sector support that responds to complex global challenges and helps countries improve their development outcomes, making it a valued partner for the global community.
Akihiko Nishio, Vice President, Development Finance, World Bank said: “IDA is vital to development in the poorest countries because it works: it improves people’s lives in many important ways. Access to the capital markets enables IDA to significantly scale up its finance and benefit more people.”
As a triple-A rated borrower, IDA leverages its unparalleled capital position, history of strong donor support, a solid track record of repayments, and prudent financial management to ramp up support for member countries to address some of the world’s biggest challenges and help millions lift themselves out of poverty.
The GBP 1.5 billion, 5-year benchmark bond is the first IDA bond to be listed on London Stock Exchange. Creating a strong brand name and investor following in pound sterling is an important element to IDA’s capital markets funding strategy.
Jingdong Hua, Vice President and Treasurer, World Bank, said: “Sterling is a core market for IDA. This transaction is another milestone in the institution’s strategy of building a diversified funding program that complements donor contributions and expands investments in the countries that need it most.”
This debut GBP benchmark bond complements the inaugural bonds issued a USD 1.5 billion benchmark in April 2018, a EUR 1.25 billion benchmark in October 2019, and the short-term IDA Bills Program launched in February 2019.