World Bank Issues $510 Million in Bonds Backed by Loans to Companies in Developing Markets

The World Bank has sold $510 million of bonds backed by loans to companies in developing markets. The bonds, known as a collateralized loan obligation (CLO), are part of the bank's efforts to attract more institutional investors to regions with limited access to capital. The deal was built by Goldman Sachs and rated Aaa by Moody's. This is the bank's first CLO, and it is part of a broader strategy to increase its investments in developing nations.

The World Bank has recently sold $510 million in bonds backed by loans to companies in developing markets. These bonds, known as collateralized loan obligations (CLOs), are part of the bank's broader strategy to attract more institutional investors to regions with limited access to capital. The deal was structured by Goldman Sachs and rated Aaa by Moody's, marking the World Bank's first CLO offering [1].

The CLOs are designed to provide a new source of financing for companies in developing nations, offering investors a way to diversify their portfolios while supporting economic growth in these regions. The World Bank aims to use the proceeds from this sale to further its mission of promoting sustainable development and reducing poverty.

Goldman Sachs, a leading global investment bank, played a crucial role in structuring the CLO. The bank's expertise in financial engineering and its extensive network in the capital markets were instrumental in bringing this deal to fruition. The Aaa rating from Moody's underscores the creditworthiness of the bonds, providing investors with a high level of confidence in the transaction.

This issuance is part of the World Bank's broader strategy to increase its investments in developing nations. By tapping into the capital markets, the bank seeks to leverage private sector resources to complement its own funding efforts. This approach not only expands the bank's reach but also fosters a more inclusive and resilient global economy.

The sale of these CLOs signals a significant shift in the World Bank's funding strategy, demonstrating its commitment to innovation and collaboration with the private sector. As the bank continues to explore new financing mechanisms, it remains focused on delivering tangible results for the communities it serves.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-goldman-sachs-bdc-inc-gsbd-stake-increased-by-north-ground-capital-2025-08-26/