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World Bank Raises USD 448 Million through Callable Step-Up Sustainable Development Bonds for Italian Investors

Washington, DC, October 18, 2016 – The World Bank (International Bank for Reconstruction and Development, IBRD, rated Aaa/AAA) has raised USD 447.568 million through its Callable Step-Up Fixed Rate Notes due October 20, 2016 (the “Bonds”).

The Bonds will pay a fixed-step coupon of 1.2% per annum for the first two years (stepping up bi-annually by 0.2% to a maximum final coupon of 2.0% per annum) and will mature on October 20, 2026 unless the Bonds are called earlier by the World Bank. The Bonds are callable by the World Bank at 100% at the 5th year anniversary, and callable annually thereafter with 5 business days’ prior notice to the bondholders.

Banca IMI, the investment bank of the Intesa Sanpaolo Group, was the sole book runner for this transaction.

Transaction Summary:

Issuer:

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

Issuer rating:

Aaa/AAA

Maturity:

10-year

Amount:

USD 447,568,000

Settlement date:

October 20, 2016

Fixed coupon:

1.2% per annum for the first two years, stepping up bi-annually by 0.2% to a maximum final coupon of 2.0% per annum

Optional redemption dates:

October 20 in each year from and including October 20, 2021 to and including October 20, 2025

Maturity date:

October 20, 2026

Issue price:

100%

Listing:

Luxembourg Stock Exchange

Clearing systems:

Clearstream, Euroclear

ISIN:

XS1492797334

Lead manager:

Banca IMI

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 investor’s 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.


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 189 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 World Bank Group has two main goals: to end extreme poverty and promote shared prosperity. The World Bank (IBRD) seeks to achieve them primarily by providing loans, risk management products, and expertise on development-related disciplines to its borrowing member government clients in middle-income countries and other creditworthy countries, and by coordinating responses to regional and global challenges. The World Bank has been issuing bonds in the international capital markets for over 60 years to fund its sustainable development activities and achieve a positive impact. Information on bonds for investors is available on the World Bank Treasury website: (www.worldbank.org/debtsecurities).

 

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