events

Webinar on Buyback Operations

January 24, 2019

Washington, D.C.

Buyback operations allow Treasuries to withdraw securities from the market before their maturity date against payment in cash. These operations are a useful tool that help sovereign debt managers mitigate refinancing risk, increase the liquidity of government securities and enhance price transparency.

This webinar illustrated three different uses of buybacks. Ms. Camila Erazo, Head of Public External Funding from the Ministry of Finance of Columbia, presented the Colombian experience; a large buyback operation conducted in October 2018, dealing with the accumulation of redemptions in this and the next few years. Mr. Tenzing Sharchok and Ms. Bozena Krupa Giza from the World Bank Treasury,  illustrated the World Bank acting as an agent for a sovereign wanting to retire securities from the international capital market when these are getting close to maturity. They also presented operations routinely offered to dealers giving them the possibility of selling back relatively illiquid MTNs.

The presentations, moderated Mr. Antonio Velandia, Senior Financial Officer, Financial Advisory & Banking from the World Bank Treasury, provided a background for these operations, the rationale for the buybacks, a high-level process for preparation and execution, as well as the challenges presented by these operations. The webinar concluded with a Q&A to provide the participants the opportunity to discuss and share other experiences and lessons learned. 

 

 

  • Webinar Agenda

    9:00–9:05 a.m. Welcome and introduction

                    Mr. Coskun Cangoz, Government Debt and Risk Management,

                    World Bank Treasury

    9:05–9:15 a.m. Background on Buyback Operations – Rationale for buybacks

                    Mr. Antonio Velandia, Government Debt and Risk Management,

                    World Bank Treasury

    9:15–9:35 a.m. Colombia buy back operations in 2018

                    Ms. Camila Erazo, Head of Public External Funding,

                    Ministry of Finance, Colombia

    9:35–9:55 a.m. Buybacks by the World Bank Treasury on behalf of IBRD 

                    and clients

                    Ms. Bozena Krupa Giza & Mr. Tenzing Sharchok, Capital Markets,

                    World Bank Treasury

    9:55–10:25 a.m. Q&A

    10:25–10:30 a.m. Wrap-up and closing

                    Antonio Velandia, Government Debt and Risk Management,

                    World Bank Treasury

     

    Click to download the agenda.