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World Bank Raises USD 4 billion in a 5-year USD Benchmark

Washington, DC, January 9, 2014 – The World Bank (IBRD, Aaa/AAA) priced today a USD 4 billion 5-year fixed rate global bond. This transaction is the World Bank’s first USD benchmark offering of 2014. The transaction was increased from the initially targeted USD 3 billion size to USD 4 billion to satisfy investor demand. This upsized and oversubscribed transaction has helped to reopen the market and establish solid fundamentals for issuance expected from other supranationals next week.

The joint-lead managers are Citigroup, J.P. Morgan, Nomura and RBC Capital Markets.

The 5-year USD benchmark carries a semi-annual coupon of 1.875% and matures on March 15, 2019. It offers investors a yield of 1.939%, which is equivalent to a spread of 18.35 basis points over the 1.500% U.S. Treasury note due December 2018.

“We decided to launch our first benchmark of the year early. The broad and diversified order book with almost 100 different accounts shows us that investors have appreciated the opportunity to participate in a World Bank transaction ahead of expected supply and uncertain market conditions. We're grateful for the support we get from investors for the World Bank's development mandate and the demonstration that investors continue to value the safety of the World Bank,“ said George Richardson, Head of Capital Markets of the World Bank.

Investor Distribution



Transaction Summary:

Issuer:
World Bank (International Bank for Reconstruction and Development, IBRD)
Issuer rating:
Aaa/AAA
Amount:
USD 4 billion
Settlement date:
16 January 2014
Coupon:
1.875%
Coupon payment dates:
15 March and 15 September
(short first, semi-annual)
Maturity date:
15 March 2019
Issue price:
99.688%
Issue yield:
1.939%
Listing:
Luxembourg Stock Exchange
Clearing system:
Fedwire, Euroclear, Clearstream
ISIN:
US459058DL43
Joint lead managers:
Citigroup, J.P. Morgan, Nomura, RBC Capital Markets
Senior Co-lead managers:
BofA Merrill Lynch, Credit Suisse, Deutsche Bank and TD Securities
Co-lead managers:
Barclays, BMO, BNP Paribas, CastleOak, Daiwa, FTN, Goldman Sachs, HSBC, Jefferies, InCapital, Morgan Stanley and SEB

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 as a cooperative institution it is able to fund its activities as a provider of financial services to its members on highly attractive terms.

Joint lead manager quotes:

“The World Bank is a tremendous credit to be marketing to investors across the globe and we were delighted with the breadth of investor support. We saw many investors coming in to buy this deal who have been absent from other recent order books,” said Philip Brown, Head of Public Sector Capital Markets, at Citigroup.

“The World Bank reacted quickly to the positive start of the year, opening the premium-end of the USD SSA market with a jumbo 5-year USD global benchmark. With a deal size of USD 4 billion, the transaction is large and liquid enough to serve as a suitable reference point for other premium-priced issuers to price off of in the coming weeks. The transaction fills a void in the issuer’s benchmark curve as it has liquid points from 2- to 10-years in the USD market,” said Sarah Lovedee, Vice President, Frequent Borrower Coverage at J.P. Morgan.

“The World Bank showed a great amount of pragmatism in moving slightly earlier in their issuance calendar than usual with this 5-year transaction. They were able take advantage of an undersupplied USD market and benefit from their loyal buyer base. The World Bank now has again lead the way in this current rate and swap spread environment with an impressive transaction,“ said Nick Dent, Head of EMEA Syndicate at Nomura.

“This is a very nice and clean execution, which is expected from a World Bank deal. It's almost as if the words "upsized", "tightened" and "broad distribution" are part of their charter. The World Bank team was quick to seize an early opportunity and this very successful transaction establishes a great reference benchmark for the sector,” said Jigme Shingsar, Managing Director, Head of US SSAs at RBC Capital Markets.



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 on bonds for investors is available on the World Bank Treasury website: (www.worldbank.org/debtsecurities).

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