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World Bank Raises USD 5 billion in a Dual-Tranche Transaction that Offers Investors 3-Year and 10-Year Global Bonds

Washington, DC, February 6, 2013 – The World Bank (IBRD, Aaa/AAA) priced today a dual-tranche transaction, offering investors USD 4.25 billion in 3-year and USD 750 million in 10-year global bonds. This transaction is the World Bank’s first USD benchmark offering in 2013. The joint-lead managers for this global bond are BNP Paribas, Goldman Sachs International, HSBC and J.P. Morgan.

The 3-year global bond carries a semi-annual coupon of 0.5% and will mature on April 15, 2016. It offers investors a yield of 0.526%, which is equivalent to a spread of +14.8 basis points over the 0.375% U.S. Treasury note due January 15, 2016.

The 10-year global bond carries a semi-annual coupon of 2.125% and will mature on February 13, 2023. It offers investors a yield of 2.190%, which is equivalent to a spread of +20.5 basis points over the 1.625% U.S. Treasury note due November 15, 2022.

“This is our first USD global bond issuance in a year. The dual-tranche issuance was a successful venture into unconventional territory. The dual-tranche approach to the transaction achieved several goals for us: raising a large amount of funds for our development programs, offering our core investor franchise the popular 3-year maturity which is most in demand, and taking a first step to refresh our presence and cater to investors new to the World Bank in the longer end of the yield curve with the 10-year tranche." said Doris Herrera-Pol, Director and Global Head of Capital Markets at the World Bank.

Investor Distribution of the USD 4.25 billion 3-year Global Bond:
By Geography By Investor Type
Central Banks / Official Institutions
Asset Managers
Banks / Corporates
Middle East and Africa
Insurance / Pension Funds
Investor Distribution of the USD 750 million 10-year Global Bond:
By Geography By Investor Type
Banks / Corporates
Insurance / Pension Funds
Asset Managers
Middle East and Africa
Central Banks / Official Institutions

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.

Transaction Summary:

World Bank (International Bank for Reconstruction and Development, IBRD)
Issuer rating:
USD 4.25 billion
USD 750 million
Settlement date:
February 13, 2013
February 13, 2013
Coupon payment dates:
15 April and 15 October (short first coupon starting on 15 April 2013)
13 February and 13 August
Maturity date:
15 April 2016
13 February 2023
Issue price:
Issue yield:
Luxembourg Stock Exchange
Clearing system:
Fedwire, Euroclear or Clearstream
Joint lead managers:
BNP Paribas; Goldman Sachs International, HSBC; J.P. Morgan
Senior Co-lead managers:
Credit Suisse, Daiwa, Deutsche Bank and Morgan Stanley
Co-lead managers:
Bank of America Merrill Lynch, CastleOak, Citi, Barclays, Jefferies, RBC, First Tennessee (FTN), Wells Fargo, SEB, Incapital, TD, Nomura

Joint lead manager quotes:

“Once again the World Bank has illustrated their willingness to respond to investor feedback by issuing an innovative dual-tranche transaction including a USD 10-year benchmark for the first time since 2006. The total deal size of USD 5 billion is especially impressive in the context of smaller supranational transactions thus far in 2013 and considering the current risk-on environment. Along with the strong US participation, the success of this transaction highlights the World Bank's position as the leading SSA issuer in the international debt capital markets." Said Jamie Stirling, Co-head of Global SSA DCM at BNP Paribas.

"This was a fantastic return to the Global USD benchmark market for the World Bank and we were delighted to be involved in the transaction. The dual-tranche strategy was chosen in order to give investors the chance to express their maturity preference, and it also allowed us to size the tranches to demand. We had not seen any supply in the 3-year maturity so far this year, and the World Bank name was the perfect name for central banks in this part of the curve. The 10-year tranche saw demand from investors looking for duration, and was the perfect complement to the 3-year maturity. The total deal size of USD 5 billion once again highlights the strong investor appeal of the World Bank name and the borrower’s strategic approach to capital markets." Said Lars Humble, Managing Director, Head of SSA Syndicate at Goldman Sachs International.

“World Bank US Dollar Globals are always high profile events, this one being no exception. The novelty of the dual-tranche approach doesn't detract from the impressive total volume they were able to raise with a minimal new issue premium. With the flexibility to precisely target demand in whichever maturity it came, World Bank was able to clear USD 5 billion from the market without any significant impact on secondaries. First mover advantage in 3 years was key, whilst extreme scarcity of 10-year supranational supply ensured a swift and high quality execution in the longer tranche.” Said PJ Bye, Global Head of Public Sector Syndicate at HSBC.

"A very strong transaction for the World Bank - the dual-tranche idea showing flexibility and versatility in a fairly hostile market - the ultimate reward being very strong deals with USD 4.25 billion in 3 years and USD 750 million in 10 years." Said Keith Price, Managing Director and Head of Frequent Borrower Syndication at J.P. Morgan.


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. With this dual tranche, the World Bank fiscal year funding to date is around $16.5 billion.

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


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