IBRD Funding Program

Structured Notes & Callable Bonds

  • World Bank (IBRD) structured notes provide investors a chance to customize the investment terms (i.e., reverse inquiry). Benefits include:

    • AAA/Aaa issuer credit rating
    • Potential yield enhancement
    • Opportunity to express views on yield curves, currencies, inflation rates, equity indices, and other risk factors
    • Fast and flexible execution.

    Various types of World Bank (IBRD) structured notes may include:

    • Callable or puttable notes
    • Floating rate notes with caps, floors or collars
    • Step-up and step-down coupons
    • Notes linked to an equity, bond, hedge fund index, or to a constant maturity swap rate
    • Dual currency notes
    • Powered dual currency notes with foreign exchange optionality
    • Other unique structures as requested by an investor and designed together with the World Bank.

    Typical Features of World Bank (IBRD) Structured Notes

    • Issuer: International Bank for Reconstruction and Development (IBRD)
    • Distribution: Private placements or public offerings
    • Documentation: Issued under Global Debt Issuance Facility (GDIF) with Final Terms to document the specific terms of the issues
    • Governing Law: Generally New York or English Law
    • Listing: Optional, generally in Luxembourg
    • Rating: GDIF is rated AAA/Aaa (separate individual note ratings feasible)
    • Clearing: Generally Euroclear and Clearstream (either bearer or registered format); DTC (registered format only)
    • Currencies: Wide range of currencies

    Liquidity Backstop

    The World Bank expects dealers in all World Bank bonds – including structured notes –  to provide secondary markets in the bonds that they underwrite. The World Bank may, at its discretion, buy back all or a portion of certain debt issues from approved dealers at market prices, subject to asset-liability constraints. 

  • Reverse Inquiry

    To propose a new issue, contact us directly or contact an underwriter. Our decision to proceed with the transaction will be guided by:

    • Minimum size requirement depends on the type of structure and can be even less than USD 5 million or equivalent in other currencies
    • Minimum maturity one year
    • Complexity of the transaction
    • Suitability of investment for the proposed investor.



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