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World Bank Issues 2 Billion South African Rand Global Bond

Washington, DC, July 19, 2007 – The World Bank (International Bank for Reconstruction and Development, IBRD) rated Aaa/AAA, has issued a 3-year global benchmark bond denominated in South African Rand (“ZAR”). The ZAR 2 billion bond is a syndicated transaction lead-managed by JPMorgan and TD Securities. The co-lead managers are ABN Amro, Deutsche Bank, HSBC, Morgan Stanley, RBC, and UBS.

Investor interest grew swiftly as soon as the bond was announced, with over 20 institutional investors from North America and Europe participating in the transaction, representing the global appeal of the World Bank credit. The bonds were placed in North America (63%) and Europe (37%). Distribution by type of investor was: fund managers 74%, pension funds and insurance companies 18%, financial institutions 5%, other 3%.

Summary terms and conditions for the new bond issue

Amount: ZAR *2 billion
Settlement date: August 2, 2007
Maturity date: August 2, 2010
Issue / re-offer price: 99.513%
Coupon: 9.75% annually
Denomination: ZAR 10,000 and multiples thereof
Format: Registered notes
Listing: Luxembourg
Clearing systems: Euroclear and Clearstream
ISIN: XS0313074220

* On January 4, 2008 the IBRD agreed to increase the principal amount of the bond by the launch of a second tranche for an amount of ZAR 750 million with an issue price of 98.274 % plus 168 days accrued interest (settlement date: January 17,2008). On August 19, 2008, the principal amount was further increased by the launch of a third tranche for an amount of ZAR 250 million with an issue price of 99.7625% plus 26 days accrued interest (settlement date: August 28, 2008). The new total outstanding principal amount is ZAR 3 billion.

About the World Bank
The World Bank is a global development cooperative owned by 185 member countries. Its purpose is to help its members achieve equitable and sustainable economic growth in their national economies and find effective solutions to pressing regional and global problems in economic development and environmental sustainability, all with a view to overcoming poverty and improving standards of living for people worldwide.

To fulfill its mandate, the World Bank Group, working through four specialized entities, provides its members with financial services (loans, equity investments, risk management tools and credit enhancement), access to experts and a pool of knowledge in development-related disciplines as well as convening and strategic services to help members pool, administer and prioritize resources they dedicate to development-related objectives.

The International Bank for Reconstruction and Development (IBRD), rated Aaa/AAA, is the oldest and largest entity in the World Bank Group and provides funding, risk management tools and credit enhancement to sovereigns. To fund this activity, IBRD has been issuing debt securities in the international capital markets for 60 years. The World Bank’s mission to fight poverty and its investments in sustainable development, including in education, health and environment, make IBRD bonds suitable for socially responsible investors. The World Bank is also the Treasury Manager for the International Finance Facility for Immunisation (IFFIm), the world’s first multilateral issuer that provides grants for a specific development purpose – health and immunization programs.

The World Bank has gained recognition as one of the market’s most innovative borrowers. It pioneered the currency swap in 1981, the first global bond (1989) and the first fully electronic bond offering (2000), among other “firsts.” It was IFR’s “Borrower of the Decade” for the 1980s and recognized by bankers in a recent EuroWeek poll as “Most Innovative Borrower over the last 20 years.”

In 2006 the World Bank raised US$10 billion in medium- to long-term funding. The World Bank’s debt products are offered in a variety of currencies and include large bonds distributed globally as well as bonds tailored to retail or institutional investors in specific markets. World Bank debt products provide investors with the assurance of a superior credit rating, a wide choice of products and strong secondary market performance for liquid World Bank global bonds. The World Bank also customizes its debt offerings to meet investors' specific asset and liability needs.

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: http://treasury.worldbank.org/recentissues.

 

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