WB's Oteh expects IDA bond to be 'phenomenal'

The World Bank’s head of treasury tells GlobalMarkets she has high hopes for the International Development Bank’s debut in the international bond markets and thinks it will make a big difference to the effectiveness of the institution

  • By Olivier Holmey
  • 13 Oct 2017
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The International Development Association’s imminent entry into the capital markets will bring big opportunities for the institution and substantially expand its capacity to support the world’s poorest states, Arunma Oteh, treasurer of the World Bank, has told GlobalMarkets

Speaking for the first time at length about the significance of this development for IDA, the World Bank Treasury and the World Bank as a whole, Oteh, who has been spearheading the plan, talked enthusiastically about the impact the released funds would have in countries where access to capital is most desperately needed. Of the prospect of making IDA a borrower on the international capital markets, Oteh said: “It’s just absolutely phenomenal.” 

IDA, which is part of the World Bank and has been in existence since 1960, has never borrowed on the capital markets, relying instead exclusively on donations from its members. For that reason, its ability to financially support the countries it is designed to assist has been limited up till now.

Oteh thinks the borrowing programme will change all that. As it stands, the plan is to launch a first bond in the coming months and to raise $8bn in debt over the next three years. IDA will then lend that money on, at market rates, to countries that investors tend to shun because they are considered less likely to repay their debts.
This redirection of funds should enable a better accompaniment of countries through the various stages of their development, Oteh argued. “There is a continuum between a poor country [that falls in IDA’s remit] and then one that borrows from the IBRD and then no longer borrows and becomes a donor. And so we should make sure that there are products along the continuum that allow countries to graduate from one level to the other.”
The treasury has been working in recent months to ready IDA for its debut, making sure it obtained ratings — it is now rated Aaa/AAA by Moody’s and S&P — and the kinds of exemptions afforded to other parts of the World Bank which have long been active in the capital markets, such as the IBRD.


  • By Olivier Holmey
  • 13 Oct 2017

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 417,761.51 1606 9.02%
2 JPMorgan 380,362.89 1737 8.21%
3 Bank of America Merrill Lynch 364,928.71 1322 7.88%
4 Goldman Sachs 269,252.76 932 5.82%
5 Barclays 267,252.43 1082 5.77%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 HSBC 45,449.36 196 6.56%
2 BNP Paribas 38,734.80 217 5.59%
3 Deutsche Bank 37,615.10 139 5.43%
4 JPMorgan 34,724.19 118 5.01%
5 Bank of America Merrill Lynch 33,835.53 112 4.88%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 22,475.46 105 8.65%
2 Morgan Stanley 19,057.00 101 7.34%
3 Citi 17,812.08 111 6.86%
4 UBS 17,693.89 71 6.81%
5 Goldman Sachs 17,333.10 99 6.67%