With more than 60 years experience in financing the International Bank for Reconstruction and Development (IBRD) and investing its reserves and pension fund, the World Bank Treasury has developed substantial expertise in asset and liability management. During this time, it has achieved a global reputation as a prudent and innovative borrower, investor and risk manager. Treasury also develops innovative lending products to meet World Bank clients' requests for customized financing - loans, derivatives, market hedges and other instruments - for their developmental programs.
Treasury now manages between US$70 and US$75 billion in global liquidity portfolios and balanced funds for the World Bank Group, the staff pension fund, central banks and other multilateral organizations. The asset management business is supported by state-of-the-art portfolio and risk management analytics and systems and also offers its clients extensive training opportunites and advice. Treasury's historical investment record in obtaining index-plus returns on very low risk has earned it an enviable reputation in this area.
From the international capital markets, Treasury currently borrows around US$25 to US$35 billion annually in about 20 currencies. It has offered World Bank bonds and notes in over 50 different currencies and opened up new markets for international investors through its issuance in emerging market currencies. Treasury is an extensive user of interest rate and currency swaps for hedging purposes, with about US$30 billion in annual volume and a swap book totaling around US$250 billion.
Treasury also develops innovative products to meet World Bank clients' requests for customized financing and risk management - loans, contingent financing, guarantees, hedging products, and catastrophe risk financing - for development programs. Treasury's financial practitioners work directly with clients to structure and deliver custom financial solutions to meet development program and debt management objectives.
A dedicated team of debt management practitioners and market specialists provide a range of capacity building services to public sector entities in a partnership to promote best practice in debt management and asset and liability management. Services are complemented with original research, interactive workshops and networking opportunities, plus an extensive portfolio of resources for practitioners.