World Bank expands SOFR index-linked market with $1.5bn transaction

The World Bank has priced a $1.5 billion five-year benchmark bond linked to the Secured Overnight Financing Rate (SOFR) index. It is the largest SOFR Index-linked bond issued by a Sovereign, Supranational or Agency.

The five-year benchmark matures on 18 September, 2025, and has an interest rate of Compounded SOFR +31 basis points. More than 30 investors placed orders in excess of $1.7 billion. 

Lead managers were BMO Capital Markets, RBC Capital Markets and Wells Fargo Securities, LLC. Castleoak was senior co-led manager.