Washington, DC, October 4, 2016 – The World Bank (IBRD, Aaa/AAA) today priced a GBP 300 million 7-year global bond. This is the first new 7-year GBP benchmark issued by a sovereign, supranational or agency (SSA) issuer this year.
Following the World Bank’s successful June 2021 new sterling issue in September of this year, this new 7-year provides an extension to the World Bank’s GBP curve and a new liquid reference benchmark.
The final order book reached more than GBP 345 million with over 20 investors participating in the transaction. The joint-lead managers for this bond are Bank of America Merrill Lynch, Citi and RBS.
The GBP benchmark has an annual coupon of 0.625% and matures on December 15, 2023. It offers investors a yield of 0.691% (annual), which is equivalent to a spread of 27 basis points over the 2.25% UK Gilt due September 2023.
Investor Distribution | |||
By Geography | By Investor Type | ||
UK | 83% | Asset Managers | 48% |
Europe | 12% | Bank / Corporates | 37% |
Americas | 5% | Insurance / Pension Funds | 10% |
Central Banks / Official Institutions | 5% | ||
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. It operates as a global development cooperative owned by 189 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 bonds in the international capital markets for over 60 years to fund its sustainable development activities and achieve a positive impact. Information on bonds for investors is available on the World Bank Treasury website: www.worldbank.org/debtsecurities.
