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World Bank Launches Inaugural 15-Year Euro 600 million Global Bond

Washington, DC, April 9, 2015 – The World Bank (IBRD, Aaa/AAA) priced its inaugural 15-year benchmark bond denominated in euro (EUR) today, raising EUR 600 million. This is the first public EUR-denominated benchmark issued by the World Bank this calendar year and the longest maturity ever offered by the World Bank in the public EUR market.

The transaction was extremely well-received, with a final orderbook in excess of EUR 750 million, driven by investors seeking long-dated, high-grade investment opportunities. Investors were keen to diversify their portfolio and take advantage of the rare opportunity to buy a World Bank security in the EUR market.

The joint-lead managers for this global bond are Bank of America Merrill Lynch and Goldman Sachs International.

This 15-year EUR benchmark carries an annual coupon of 0.5% and matures on April 16, 2030.  It offers investors a yield of 0.526%, which is equivalent to a spread of 18.5 basis points over the 6.250% German Bunds due January 4, 2030.

“This is an excellent result for our investors and our shareholders. It shows the strong confidence European investors have in the quality of the World Bank’s credit and the appreciation for its purpose – to invest in sustainable development and achieve a positive social impact”, said Doris Herrera-Pol, Director and Global Head of Capital Markets, World Bank.

Investor Distribution for the EUR 600 million 15-year EUR Benchmark



Transaction Summary:

Issuer:

World Bank (International Bank for Reconstruction and Development, IBRD)

Issuer rating:

Aaa/AAA

Maturity:

15-year

Amount:

EUR 600 million

Settlement date:

April 16, 2015

Coupon:

0.500%

Coupon payment dates:

Paid annually on April 16

Maturity date:

April 16, 2030

Issue price:

99.626%

Issue yield:

0.526%

Listing:

Luxembourg Stock Exchange

Clearing systems:

Euroclear, Clearstream

ISIN:

XS1218809389

Joint lead managers:

Bank of America Merrill Lynch, Goldman Sachs International

 

Joint lead manager quotes:

“The World Bank had an opportunity to fund long-dated assets directly in the Euro market. This has enabled them to offer much needed name diversification to investors in longer dates. The result is very nice EUR 600 million 15-year Euro benchmark at extremely competitive levels. A great result for all involved.” said Adrien de Naurois, Managing Director, Syndicate, Bank of America Merrill Lynch.

“A very successful outcome for the inaugural 15-year EUR benchmark from the World Bank. The 15-year issue enabled the World Bank to target a maturity that is not readily available in other markets and also to diversify its investor base, by tapping demand from European real money accounts.” said Lars Humble, Head of SSA Syndicate, Goldman Sachs International.

 

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 World Bank Group has two main goals: to end extreme poverty and promote shared prosperity. The World Bank (IBRD) seeks to achieve them primarily by providing loans, risk management products, and expertise on development-related disciplines to its borrowing member government clients in middle-income countries and other creditworthy countries, and by coordinating responses to regional and global challenges. The World Bank has been issuing bonds in the international capital markets for over 60 years to fund its sustainable development activities and achieve a positive impact.
Information for investors is available on the World Bank Treasury website: (www.worldbank.org/debtsecurities).

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