World Bank USD 3.5 Billion 3-year Fixed Rate Global Bond

Washington, DC, April 20, 2010 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) priced today a USD 3.5 billion global fixed rate note, its first USD benchmark in 2010. This global bond was joint-lead managed by Deutsche Bank, J.P. Morgan, Morgan Stanley and The Royal Bank of Scotland.

The global bond carries a semi-annual coupon of 1.75% and will mature on July 15, 2013. It was priced with a spread of 25 basis points over the 1.75% U.S. Treasury note due April 15, 2013, which translates to a yield of 1.873%.

“It was gratifying for us to see the investor response. The transaction was oversubscribed within the first few hours. The final order book had more than 80 orders from investors spread across 30 countries.” said Kenneth G. Lay, Vice President and Treasurer, World Bank.

The markets have been volatile over the past few months, but the World Bank was able to take advantage of a relatively stable market window for its transaction. With much of the recent supranational supply concentrated in the 5-year sector, the World Bank catered to investors interested in shorter-dated paper of the highest quality.

“We appreciate and look forward to continuing our close collaboration with investors, the financial institutions that help place our bonds, and other market participants.” said Doris Herrera-Pol, Director and Global Head of Capital Markets at the World Bank.

Investor Distribution:

Transaction Summary:

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

Issuer rating: Aaa/AAA

Amount: USD 3.5 billion
Settlement date: April 27, 2010
Coupon: 1.75% (semi-annual, short first July 15, 2010)
Maturity date: July 15, 2013
Issue price: 99.619%
Issue yield: 1.873%
Listing: Luxembourg Stock Exchange
Clearing systems: Fedwire, Euroclear or Clearstream

Joint lead managers: Deutsche Bank, J.P. Morgan, Morgan Stanley, The Royal Bank of Scotland
Senior co lead managers: Barclays, Daiwa, Citi, Credit Suisse
Co-lead managers: BNP Paribas, Bank of America Merrill Lynch, Goldman Sachs, HSBC, Nomura, Royal Bank of Canada, SEB, Societe Generale, TD Securities, UBS

ISIN: US459058AN36

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 investors high-quality liquid instruments. This approach has direct benefits for World Bank member countries as well, since this cooperative institution is able to fund its activities as a provider of financial services for its members on highly attractive terms.

Joint lead manager quotes:

Bill Northfield, Head of Sovereign, Supranational and Agency Originations, Deutsche Bank: “The World Bank has once again proven to be truly strategic in its approach to capital markets financing. Marketing versus U.S. Treasuries insulated investors from latent swap spread volatility and reflects the World Bank's ongoing strategy of engaging investors worldwide with investor-driven deals. Their intense focus on looking for the best deal, in terms of both bond pricing and secondary performance, is exemplary. The entire team here is honored to be awarded a joint lead role on the World Bank's latest USD Global benchmark.”

Richard Gustard, Managing Director, Head of Frequent Borrowers Trading & Syndicate, J.P. Morgan: “With this latest transaction, the World Bank has demonstrated yet again that this issuer is the rock which investors cling to in times of market uncertainty. With a backdrop of further sovereign uncertainty and falling U.S. Treasury yields a USD 4 billion order book was rapidly assembled from a global quorum of the largest and highest quality investors. Unusually this deal was marketed almost entirely as a spread reference versus U.S. Treasuries, and ultimately the U.S. Treasury served to be a better reference point than the swap curve - again underlining the premium placed on this rare issuer in the USD supranational market.”

Andrea Dorfzaun, Vice President, Sovereign Supranational Agency Group, Morgan Stanley: “The World Bank’s return to the USD benchmark market was a success by all measures. The quality of the name and its unparalleled market following, coupled with a unique marketing approach, enabled the World Bank to successfully capture demand from both traditional supranational, sovereign and agency investors as well as accounts who have not played in our space for some time. We congratulate the World Bank Treasury for yet another landmark financing, and are honored to have been a part of this transaction.”

Jamie Stirling, Managing Director, Frequent Borrower Group, The Royal Bank of Scotland: “The World Bank continues to be regarded by investors and issuers alike as the highest quality name in the international capital markets. After an absence of over a year, it is therefore perhaps not surprising that this transaction attracted such strong investor demand. Historically, the World Bank has accessed the public markets during times of uncertainty in the hope of helping to stabilize primary market conditions and the timing of this transaction is no different. With Treasuries at low absolute yield levels, swap spreads at historical tights and continued sovereign uncertainty, the success of this transaction will also to provide a new current benchmark for the supranational, sovereign and agency market”

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 186 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. The World Bank is one of the most recognized and innovative borrowers in the international capital markets. The World Bank designed and issued the first global bond in 1989. Information on bonds for investors is available on the World Bank Treasury website: (www.worldbank.org/debtsecurities).

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