Washington, DC, January 6, 2017 – The World Bank (IBRD, Aaa/AAA) today priced a GBP 500 million 5- year global bond.
The GBP benchmark offers an annual coupon of 0.75% and matures on December 7, 2021. It offers investors a yield of 0.843% (semi-annual), which is equivalent to a spread of 30 basis points over the 3.75% UK Gilt due September 2021.
The final order book was in excess of GBP 530 million with over 30 orders anchored by UK investors. The joint-lead managers for this global bond are Barclays, Citi, and NatWest Markets.
“We are extremely pleased to add a new World Bank 5-year benchmark to our yield curve in the Sterling market so early in the year. With this benchmark, we are confirming our commitment to offer liquid, high quality investment opportunities to investors around the world in various currencies and markets. We appreciate the continued support from investors for the World Bank and our development mandate,” said Arunma Oteh, Vice President and Treasurer, World Bank.
Investor Distribution | |||
By Geography | By Investor Type | ||
UK | 87% | Banks | 57% |
Europe | 10% | Fund Managers | 27% |
Asia | 2% | Central Banks / Official Institutions | 10% |
Other | 1% | Insurance Companies / Pension Funds | 6% |
Transaction Summary | |
Issuer: | World Bank (International Bank for Reconstruction and Development, IBRD) |
Issuer rating: | Aaa/AAA |
Maturity: | 5-year |
Amount: | GBP 500 million |
Settlement date: | January 13, 2017 |
Issuer price: | 99.954% |
Coupon: | 0.75% p.a. |
Coupon payment dates: | Paid annually on December 7 of each year |
Maturity date: | December 7, 2021 |
Issue price: | 99.547% |
Issue yield: | 0.843% (semi-annual) |
Listing: | Luxembourg Stock Exchange |
Clearing systems: | Euroclear, Clearstream Luxembourg |
ISIN: | XS1548943064 |
Joint lead managers: | Barclays, Citi, NatWest Markets |
Joint Lead Manager Quotes
“World Bank has again cemented its position as a pre-eminent Sterling benchmark issuer, offering an attractive spread for the quality of its credit, without concession for the size. This impressive achievement by the World Bank team was all completed in the midst of much competition and an almost record volume of issuance in the first week of January,” said Lee Cumbes, Head of Public Sector EMEA, Barclays.
"We were delighted to participate in IBRD's new December 2021 transaction. The issuer expertly navigated a busy period of supply and generated a high quality order book that allowed for a strong GBP 500 million bond. It was a highly successful first issue in 2017 and created a further liquid reference point on their burgeoning Sterling curve," said Alex Barnes, Head of SSA Syndicate, Citi.
“The World Bank managed to successfully navigate an intense competing pipeline and a busy economic calendar, to issue a large transaction at a tight level vs. UK Gilts. This transaction is another robust testament to both the World Bank’s credit quality amongst the Sterling investor base and the high level of professionalism of their team,” said Damien Carde, Head of Frequent Borrower Group DCM, NatWest Markets.
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. The demand World Bank managed to attract in what remains challenging conditions reiterates the highest quality reputation and trust World Bank as an issuer has in the market.
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.
