World Bank to issue its First Ringgit Islamic Bonds
Kuala Lumpur, April 29, 2005 - The International Bank for Reconstruction and Development, commonly known as the World Bank, has priced its RM 760 million (USD 200 million equivalent) Islamic debt securities. This bond issue is the World Bank’s first Islamic debt issue, and is the largest Ringgit issuance by a supranational organization to date. The bonds, structured under the Syariah principle of Bai Bithaman Ajil, will be known as the World Bank Wawasan bonds.
The securities have received indicative credit ratings of AAA by Standard & Poor’s and Aaa by Moody’s Investors Service. The Joint Lead Managers for this transaction are ABN AMRO and Commerce International Merchant Bankers Berhad.
The World Bank is an international organization established in 1945 and is owned by 184 member countries, including Malaysia. The World Bank’s mission is to help developing countries reduce poverty through sustainable economic growth.
The book building process commenced on Wednesday, 27 April, 2005 and closed this morning, April 29, 2005. The issue was 1.9 times oversubscribed and was priced at a profit rate per annum of 3.58% payable semi-annually. The joint lead managers commented that demand for the issue was very strong, and bids were submitted by a diverse group of domestic and international investors. The terms of the notes are as follows:
Amount : MYR 760 million (USD 200 million equivalent)
Settlement date : May 12, 2005
Maturity date : May 12, 2010
Issue price : 100% of par
Profit rate : 3.58% (s.a.)
Clearing systems : Bank Negara Malaysia RENTAS
“We are very pleased with the results of the bookbuilding and the pricing of our debut Ringgit issue. With the increasing depth of the Malaysian capital markets, we hope to maintain a presence in this market in the future,” said Hiro Tsubota, Principal Financial Officer of the World Bank.
The proceeds of the issue will be used in the general operations of the World Bank.
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: List of Selected Recent World Bank Bonds.
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