The International Bank for Reconstruction and Development (IBRD), generally referred to as the World Bank, is one of the largest international borrowers in the world. It is also one of the most frequent international bond issuers with hundreds of transactions per year. The World Bank was founded in 1944 and issued its first bond in 1947. Since then, it has continuously developed innovative debt products, opened up new markets for issuance, and built-up a broad investor base around the world. Bonds issued by the World Bank are AAA-rated (highest possible bond rating) by Moody´s and S&P. 

The World Bank's borrowing requirements are primarily determined by its lending activities for development projects. As World Bank lending has changed over time, so has its annual borrowing programs. In fiscal year 2017, the World Bank issued debt securities for a total volume equivalent to US$56 billion. For fiscal year 2018 and beyond, annual bond issuance is expected to be around US$50-55 billion. As of June 30, 2017, the amount of total borrowings outstanding was US$207 billion. 

The International Finance Corporation (IFC), the private sector lending affiliate of the World Bank, also offers debt instruments.

The World Bank is the most established development finance institution in the world. Funds raised by the World Bank in the financial markets are used for its general operations, which include lending to developing and emerging economies in order to fight poverty and to help people help themselves. More specifically, World Bank funding is used for investing in people, protecting the environment, stimulating private sector growth, strengthening government capacity, promoting economic reform, and attracting co-financing from other donors. 

After its establishment in 1944 amidst the ruins of World War II, the World Bank made its first loans to European countries for post-war reconstruction. In the 1950s and 1960s, its lending focus shifted to other developing parts of the world, such as Japan. Today, the World Bank is a major player in building the markets of tomorrow in Africa, Asia, Latin America, Eastern Europe, and the former Soviet Union. As the single largest investor in human development, social development and gender, and social protection projects, investment in the social sector accounts for approximately 30 percent of the World Bank's total portfolio. The World Bank is also the largest funder of environmental projects with more than US$11 billion of investment in projects with a focus on the environment and natural resources.

Individual debt instruments issued by the World Bank are not direct obligations of any government. However, World Bank debt instruments are collectively backed by the capital commitments of its member countries. This is one of the reasons why rating agencies and other members of the financial community often refer to the World Bank as a "quasi-sovereign" issuer. The World Bank has a AAA-rating from Moody´s and S&P. 

At the present time, the World Bank has 189 sovereign shareholders. The largest shareholders include the United States (17.25% of total subscribed capital), Japan (7.42%), China (4.78%), Germany (4.33%), and France and the United Kingdom (with 4.06% each). Of the World Bank's total subscribed capital of US$268.9 billion, US$252.8 billion is callable capital. This latter capital can only be called from our shareholders for the purpose of satisfying claims by World Bank debt holders or meeting certain guarantee obligations. Over the course of its 70-year history, the World Bank has never made a capital call.

The World Bank has been rated AAA, the highest possible rating available, for more than 50 years by the major credit rating agencies. This quality assessment is confirmed by the capital markets which have been welcoming World Bank debt instruments since the issuance of the first World Bank bond in 1947. 

There are six main reasons for the high degree of quality of World Bank debt instruments. First, World Bank debt is backed by the Bank's 189 sovereign shareholders. Second, the World Bank follows highly prudent financial policies that restrict its lending to a maximum of one dollar in loans per one dollar of total subscribed capital and reserves - the current ratio is 61.5%. Third, the World Bank has earned positive allocable income in every year since 1964. Fourth, the World Bank maintains a highly liquid asset base in order to be flexible in the timing of its new debt issuance. Fifth, the World Bank´s prudent lending policies, loan concentration limits ensure the high quality of the World Bank's loan portfolio. And finally, the World Bank only lends to sovereigns and sovereign-guaranteed projects and is recognized by the major rating agencies to enjoy a preferred creditor status with its borrower shareholders.

Socially Responsible Investing (SRI) is one of many terms used to describe an investment strategy aiming to maximize social good and financial returns. Others include social, sustainable, ethical, and mission-based investing. 

The World Bank's mission to fight poverty in a sustainable way, through education, health and environment, make IBRD bonds suitable for investors with such an investment strategy. 

The World Bank is a global development cooperative owned by 189 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. 

IBRD's bonds finance projects that emphasize the need to (1) invest in people, particularly through strengthening basic health and education systems, (2) protect the environment by strengthening governance and reducing environmental degradation, (3) support private business development, (4) strengthen the ability of governments to deliver quality public services, (5) promote reforms to create stable macroeconomic environments, and (6) foster social development, inclusion, governance and institution-building as key elements of poverty reduction. For more information about the SRI nature of World Bank bonds, Click Here.

The World Bank offers a wide range of debt instruments available in the capital markets. For 70 years, the World Bank has continuously working to develop new types of debt products in order to meet the specific needs of both its institutional and retail investors throughout the world. 

World Bank debt instruments can be classified into four main categories: (i) benchmark and global bonds in major world currencies that provide high liquidity and spread performance and are generally placed with institutional investors; (ii) plain vanilla and emerging currency bonds that offer a potential yield pick-up for retail and institutional investors without credit risk; (iii) structured notes that are often custom-made to fit the particular asset and liability management requirements of institutional investors, and (iv) USD discount notes with maturities of 360 days or less. 

The primary objective of issuing World Bank debt instruments is to meet investors' needs by providing a maximum degree of flexibility in its debt offerings. 

The World Bank issues bonds in a variety of ways: on very short notice and at any local business time; in most of the active borrowing currencies; in most maturities and issue sizes; in Eurobond, global bond or domestic bond formats; as registered or bearer bonds, in either definitive or global note forms; using a variety of settlement and clearing systems; and with a multitude of structured note elements and options such as calls and puts, floating and fixed-rate coupons, and equity and foreign exchange-linked coupons and redemptions. The World Bank works daily with a broad range of financial houses so as to utilize underwriters' strengths and deliver the best possible value to investors.

World Bank bonds can be bought and sold through security houses, commercial banks, dealers and brokers. Investors should contact their local financial service providers for information on specific World Bank securities, including prices and availability. Prices are quoted on many securities exchanges, the major electronic trading platforms, and in selected financial newspapers. 

The World Bank is a leader in maintaining close relationships with a broad range of underwriters in all financial markets. World Bank debt securities have been brought to the market by some 30 different lead managers. Many of the new bond issues include additional financial houses and banks in the bond syndicate to ensure a broad geographical distribution and firm primary placement of the bonds. Discount notes of the World Bank are sold through a group of dealers under the Discount Notes Program (please see the Discount Notes ProgramOffering Circular for a list of the dealers).

World Bank bonds are listed on many of the main securities exchanges in the world. For the majority of Eurobonds that we issue, the Luxembourg Stock Exchange will be a place of listing. World Bank bonds issued under the domestic law of the bond currency country will frequently be listed on the stock exchange of that same country. In some cases, investors prefer our debt securities to not be listed and to purchase these instruments as a private placement.

Investors and other parties that require more information on World Bank debt instruments can contact us directly by sending an email to debtsecurities@worldbank.org or a fax to +1 (202) 477-8355.

Visit the World Bank's main web site at www.worldbank.org. This site contains a wealth of information on the World Bank's mission, structure, and operations.