The notes are issued under the laws of England and documented under IBRD's Global Debt Issuance Facility. The notes will be listed on the Luxembourg Stock Exchange and will settle through Euroclear and Clearstream Luxembourg. The notes are expected to qualify as eligible collateral for repurchase agreements for the European Central Bank’s open market operations.
“After having successfully issued four Deutsche Mark Global bonds in the 1990s, we are extremely pleased to have been able to issue our inaugural benchmark in Euro. We are delighted with the reception that this new bond has received, and it particularly illustrates the special nature of the relationship we have with global investors, especially central banks. I am also glad to see the value placed in our institution by the European investor base, to which we had not been able to issue a liquid benchmark in their home currency for quite some time,” said Doris Herrera-Pol, Head of Capital Markets Operations, World Bank Treasury.
“The World Bank has timed their long-awaited access to the most diverse international investor base perfectly with Euro government yields in their highest range for five years. This strongly-received Euro debut is another landmark for an issuer which has launched and enjoyed so many innovations and successes around the globe, and furthers The World Bank’s sustainable development message,” said Clinton Orr, Head of Public Sector Origination at ABN AMRO.
"The World Bank has once again proven to be truly strategic in its approach to capital markets financing. Reaching out to Euro investors with this landmark offering continues its strategy of engaging investors world-wide by providing investor-driven deals that increase the World Bank's capacity for reducing poverty on a global scale. Their intense focus on looking for the best deal, in terms of both bond pricing and secondary performance is exemplary. We are honoured to be awarded a joint lead role on the World Bank's first ever Euro benchmark," said Ralph Berlowitz, Managing Director, Head of Liquid Credit Syndicate at Deutsche Bank.
"In bringing this liquid transaction amidst optimal market conditions, the World Bank has once again established itself as a premier issuer in the markets. This debut Euro benchmark deal attracted a veritable Who’s Who investor list of Central Banks and Fund Managers, which will set the stage for further secondary market performance. A truly textbook inaugural Euro transaction for the World Bank,” said Jeff Diehl, Global Head of Public Sector Capital Markets at HSBC.
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.
For more information, see www.worldbank.org/debtsecurities.
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.