IDA bond issue sees no stabilisation action by J.P. Morgan

LONDON - J.P. Morgan Securities PLC has announced that no stabilisation measures were executed for the International Development Association’s (IDA) recent EUR 1.75 billion bond issue. The securities, fixed-rate notes with a 3.5% coupon due on June 12, 2045, and listed on the Luxembourg exchange, were part of an offering with an initial offer price of 99.674.

Stabilisation activities are conducted to support the market price of securities following their issuance. However, in this case, J.P. Morgan, acting as the stabilisation coordinator alongside BofA, DB, and DZ as managers, confirmed that no such actions were deemed necessary post-launch.

The absence of stabilisation efforts indicates that the market has received the IDA’s issuance favorably, maintaining its stability without external support. This development could reflect investor confidence in the IDA’s creditworthiness and the appeal of the bond’s terms.

The IDA, part of the World Bank Group, focuses on providing support to the world’s poorest countries. This bond issue is part of its efforts to raise capital for development projects around the globe. The proceeds are expected to finance a variety of initiatives aimed at reducing poverty and promoting economic growth in developing nations.

Investors should note that the securities mentioned have not been registered under the United States Securities Act of 1933 and, as such, may not be offered or sold in the United States absent registration or an exemption from registration. There will not be a public offering of these securities in the United States.

The information regarding the bond issue and subsequent stabilisation activities is based on a press release statement and has been provided by RNS, the news service of the London Stock Exchange (LON:LSEG), which is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom (TADAWUL:4280).

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