N°24-87: Multilateral Development Bank Bonds

Multilateral development banks (MDBs) play a key role in development finance. MDBs raise capital by issuing a substantial quantity of bonds, both in terms of face value and volume. We are the first to analyze the bond issuance behavior and yield spread determinants of MDBs. Our findings highlight the increase in bond issues over time, driven by new MDB establishments and an increase in bonds issued per MDB. We also observe a shift from long-term to short-term bonds post-global financial crisis. Additionally, our analysis identifies factors such as credit ratings, governance indicators, and shareholder conflict as determinants of bond yield spreads.