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The World Bank Issues Its First Mexican Peso Global Bond

Washington, DC, March 3, 2006 – The International Bank for Reconstruction and Development (IBRD), known as The World Bank, issued its first Mexican peso global bond. With this strategic transaction, the World Bank hopes to further contribute to the development of the Mexican peso bond market.

In 2000, the World Bank was the first international issuer of Mexican peso bonds with its 3-year bond primarily targeting international investors.

This new bond issued by the World Bank bond provides investors with a larger, more liquid offering and attracts demand from a wider range of investors, both within and outside Mexico. This transaction is one of the largest issues by an international borrower in the Mexican Peso market. It was driven by domestic institutional investors attracted to the security for diversification benefits and exceptional credit quality. For international investors, the global format was used to allow for the broadest and deepest reach from inception through to secondary markets, contributing to the liquidity of the bond.

This new MXN 2 billion benchmark pays a coupon of 7.56%. With an issue price of 100.00%, the bond offered investors a yield flat to the Mexican Government 5-year benchmark bond. The transaction was lead managed by Banco Bilbao Vizcaya Argentaria S.A. (BBVA) and Goldman Sachs International.

The majority of the bonds were placed with Mexican institutional investors, mostly public pension funds and fund managers, and with retail investors. Demand outside Mexico was primarily from fund managers and retail banks in Europe.

Summary terms and conditions for the new IBRD bond issue

Amount: MXN 2 billion
Settlement date: March 10, 2006
Maturity Date: March 10, 2011
Issue price: 100.00%
Coupon: 7.56% paid semi annually
Denomination: MXN 1,000 and integral multiples thereof
Format: Global
Listing: Luxembourg and application made to Sistema Internacional de Cotizaciones (SIC)
Clearing systems: Euroclear and Clearstream
ISIN: XS0247207565


The World Bank's bond products and investor presentation can be accessed through the website of the World Bank for bond investors (www.worldbank.org/debtsecurities). For a list of selected bonds issued recently by the World Bank, see: http://treasury.worldbank.org/recentissues.

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