Oluwatobi Adu 
ABUJA, Nigeria – The International Development Association (IDA) has raised $3 billion through a new five-year global bond as it seeks to expand the pool of private capital available to the world’s lowest-income countries.
The bond attracted nearly $8 billion in investor orders, making the transaction 2.6 times oversubscribed, according to an announcement by the World Bank.
The IDA $3 billion bond was priced on Tuesday after attracting 125 investor orders, with more than 30 per cent of demand coming from investors in the United States.
The bond carries a semi-annual coupon of 4.875 per cent and a yield of 4.884 per cent. It matures on September 25, 2031, and is denominated in US dollars, with a minimum denomination of $1,000.
IDA said proceeds from the IDA $3 billion bond will form part of its sustainable development financing and support development programmes in eligible low-income countries.
Investors from the Americas represented 43 per cent of the geographical distribution.
Anshula Kant, Managing Director and World Bank Group Chief Financial Officer, said the transaction would help broaden IDA’s investor base and strengthen its ability to mobilise private capital for development.
“Since its creation, IDA has helped countries invest in people and infrastructure, improving lives and creating jobs for millions around the world,” Kant said.
She added: “This inaugural SEC registration exempt bond marks an important milestone in IDA’s evolution as a capital markets issuer, broadening access to new investors and strengthening our ability to connect private capital with development impact at scale.”
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Mirian Gom 
