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World Bank Launches 1 Billion 5-year Canadian Dollar Global Bond
-Largest single-tranche public offering by a supranational issuer in Canadian Dollars-

Washington, DC, May 22, 2014 - Today, the World Bank (International Bank for Reconstruction and Development, IBRD, rated Aaa/AAA), launched a Canadian Dollar 1 billion 5-year fixed rate global bond. This is the World Bank’s largest Canadian Dollar global bond and the largest single-tranche deal from a supranational issuer in this market. The last Canadian Dollar global bond from the World Bank was issued in October 2013 and was also a 5-year transaction.

The 5-year bond carries a semi-annual coupon of 1.875% and will mature on May 30, 2019. It offers a semi-annual yield of 1.958% which is equivalent to a spread of 38.3 basis points over the Canadian Government’s 1.75% March 2019 benchmark.

The transaction was oversubscribed and upsized from the initially targeted size of CAD 500million based on the positive investor response, especially from central banks and other official institutions.

The joint lead managers for this offering were BMO Capital Markets and TD Securities.

“We appreciate the warm reception this offering received from a broad group of investors today, and were pleased to increase the size of the transaction to meet this investor demand” said Andrea Dore, Lead Financial Officer, Capital Markets, World Bank.

The bonds were placed with 28 institutional investors globally. The high-quality order book had a well-balanced investor distribution by region and type:

Investor Distribution
By Geography
By Investor Type
Asia
50%
Central Banks / Official Institutions
66%
Americas
27%
Banks / Corporates
24%
Europe
18%
Asset Managers
10%
Middle East and Africa
5%

 

Transaction Summary:

Issuer: World Bank (International Bank for Reconstruction and Development, IBRD)
Issuer rating: Aaa/AAA
Amount: CAD 1 billion
Settlement date: May 30, 2014
Maturity date: May 30, 2019
Issue price: 99.605%
Coupon: 1.875% (semi-annual)
Denomination: CAD 1,000 and multiples thereof
Listing: Luxembourg Stock Exchange
Clearing system: CDS, and DTC, Euroclear / Clearstream
Joint lead managers: BMO Capital Markets, TD Securities
Co-lead managers: CIBC, Scotia Bank, RBC

Joint Lead Manager Quotes:

“BMO Capital Markets is thrilled to have been chosen to lead this important return to the CAD market for the World Bank. We were pleased to see broad interest from central banks, bank treasuries and traditional asset managers located in Asia, Europe as well as the Americas for Canadian Dollar denominated paper. Strong demand allowed the deal to be upsized and provide the World Bank with a meaningful contribution to its funding requirements at a very cost effective level. The successful CAD 1 billion transaction underscores continued appetite for World Bank Canadian Dollar paper by the global investor community, as a consistent borrower in the market for a third consecutive year, with the World Bank achieving its largest size issued in this market,” said Kelsey Gunderson, Managing Director and Head of Investor Fixed Income and Derivatives Distribution, BMO Capital Markets.

“There has been a clear lack of supply from prime sovereign, supranational and agency issuers in the Maple market in 2014. The World Bank was incredibly nimble, as always, in responding to positive market conditions and in providing investors with the right product at the right time. The final order book was well oversubscribed which is rare in this market and was composed of exceptionally high quality accounts with particularly strong support from the central banking community,” said Salvatore Aloisi, Director, Syndication & Origination, TD Securities.

The present transaction is consistent with the World Bank’s longstanding practice of deploying its franchise as an issuer in the international capital markets to offer investor’s high-quality, liquid instruments. This approach has direct benefits for World Bank member countries as well, since as a cooperative institution it is able to fund its activities as a provider of financial services to its members on highly attractive terms.


About the World Bank

The World Bank (International Bank for Reconstruction and Development, IBRD), rated Aaa/AAA (Moody’s/S&P), is an international organization created in 1944. It operates as a global development cooperative owned by 188 nations. It provides its members with financing, expertise and coordination services so they can achieve equitable and sustainable economic growth in their national economies and find effective solutions to pressing regional and global economic and environmental problems. The overriding goal is to achieve major, sustainable improvements in standards of living worldwide. It has been issuing bonds in the international capital markets for over 60 years to fund its activities. Information for investors is available on the World Bank Treasury website: (http://treasury.worldbank.org/capitalmarkets).

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