World Bank issues USD 3.5 billion in a 10-Year Global: Its First Benchmark Transaction of the New Financial Year

Washington, DC, July 22, 2015 – The World Bank (IBRD, Aaa/AAA) today priced a USD 3.5 billion 10-year USD Global, its first Global bond of the new 2015-2016 financial year commencing July 1, 2015.

It represents the World Bank’s first 10-year offering since their USD 4 billion Global in November 2014 and adds a new liquid point on the World Bank’s USD curve in the 2025 segment. It is also the largest 10-year Global transaction by a supranational so far this year.

The transaction was significantly oversubscribed with over 80 orders, a final order book of USD 4.5 billion and strong Bank Treasury and Fund Manager Participation. The joint-lead managers for this global bond are Barclays, Deutsche Bank, HSBC and TD Securities.

The 10-year USD benchmark carries a semi-annual coupon of 2.5% and matures on July 29, 2025. It offers investors a yield of 2.535%, which is equivalent to a spread of 22.6 basis points over the 2.125% U.S. Treasury note due May 15, 2025.

“We are delighted with the strong demand for our first benchmark transaction of the fiscal year. This bond provides the institution with stable, attractive, long-dated funding to support loans to our member countries while offering investors a rare opportunity to be part of a large, liquid, long-dated World Bank transaction. We appreciate the continued support from investors for the World Bank and our development mandate,” said Doris Herrera-Pol, Director and Global Head of Capital Markets at the World Bank.

*On March 7, 2016, IBRD agreed to increase the principal amount with a second tranche in the amount of USD 300 million with an issue price of 103.154% (settlement date: March 14, 2015). On March 17, 2015, IBRD agreed to increase the principal amount with a third tranche in the amount of USD 200 million with an issue price of 103.412% (settlement date: March 24, 2016). On May 1, 2016, IBRD agreed to increase the principal amount with a fourth tranche in the amount of USD 100 million with an issue price of 104.831% (settlement date: May 26, 2016). The new total outstanding principal amount is USD 4.1 billion.

The present transaction is consistent with the World Bank’s longstanding practice of deploying its franchise as an issuer in the international capital markets to offer investor’s high-quality, liquid instruments. This approach has direct benefits for World Bank member countries as well, since as a cooperative institution it is able to fund its activities as a provider of financial services to its members on highly attractive terms.

Joint Lead Manager Quotes:

“Outstanding transaction for World Bank’s first US$ Global benchmark of their new fiscal year. The 10-year sector of the US$ curve hasn’t been tapped in that sort of size for about 3 months and World Bank achieved a very well diversified order books with strong interest from bank treasuries and central banks allowing them to issue US$3.5bn, the largest SSA benchmark in this maturity so far this year. Congratulation to the World Bank team!” said Susan Barron, Managing Director SSAR Origination at Barclays.

“The World Bank has capitalized on the relative calm in the markets following a toning down of the Greek situation. The global demand for the name and the longer tenor are a testament to the high regard investors have for the safe haven nature of the World Bank. Great timing, great reception, great success all around”, said Nigel Cree, Head of SSA Origination at Deutsche Bank.

“The World Bank was always going to be the perfect SSA issuer to reopen the 10-year US dollar sector after a period of considerable market volatility and uncertainty. Their unique combination of impeccable credit quality and guaranteed liquidity ensured a strong over-subscription from the highest calibre of institutional investors”, said PJ Bye, Global Head of Public Sector Syndicate at HSBC.

“This was an incredible return to the market for the World Bank with its first 10-year US Dollar Global of 2015 and TD was delighted to be involved. IBRD effectively reopened the 10-year part of the curve after the volatility we have seen around Greece over the last month,” said Salvatore Aloisi, Managing Director, Head of Origination and Syndicate Europe at TD Securities.

About the World Bank

The World Bank (International Bank for Reconstruction and Development, IBRD), rated Aaa/AAA (Moody’s/S&P), is an international organization created in 1944 and the original member of the World Bank Group. It operates as a global development cooperative owned by 188 nations. It provides its members with financing, expertise and coordination services so they can achieve equitable and sustainable economic growth in their national economies and find effective solutions to pressing regional and global economic and environmental problems. The World Bank Group has two main goals: to end extreme poverty and promote shared prosperity. The World Bank (IBRD) seeks to achieve them primarily by providing loans, risk management products, and expertise on development-related disciplines to its borrowing member government clients in middle-income countries and other creditworthy countries, and by coordinating responses to regional and global challenges. The World Bank has been issuing sustainable development bonds in the international capital markets for over 60 years to fund its activities that achieve a positive impact. Information on bonds for investors is available on the World Bank Treasury website: (www.worldbank.org/debtsecurities).