Washington, DC, January 24, 2019 –The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced its first benchmark bond denominated in pound sterling for 2019, raising GBP 1 billion from investors around the world.
The high-quality order book exceeded GBP 1.2 billion and attracted 45 investors with nearly a quarter of them from outside the UK market. The bond offers an annual coupon of 1.250% and a semi-annual yield of 1.301%. It was priced at +40 basis points (bps) over the 2.25% UK Gilt due September 2023. The joint-lead managers for the bond are Barclays, Citi and NatWest Markets.
Investors in the World Bank’s benchmark and global bond program benefit from the World Bank’s credit quality, liquidity and portfolio opportunities, while supporting its development mandate. This year also marks the 30th anniversary of the world’s first global bond, since the World Bank pioneered the market in 1989.
Jingdong Hua, World Bank Vice President and Treasurer, said: “Since issuing its first bond denominated in pound sterling nearly 68 years ago, the World Bank (IBRD) has developed a deep partnership with pound sterling investors in the UK and around the world. We thank our investors for providing such a warm reception to our bond in this very important market. We sincerely appreciate their support for our development mandate.”
Alex Paterson, Director SSA Origination, Barclays, said: "The World Bank has once again priced a highly successful Sterling benchmark transaction at the start of the calendar year. The World Bank has demonstrated its unrivalled credit quality and broad investor following with this £1bn sized transaction at the tightest Gilt spread for the year to date. Barclays is honoured to have been involved as a bookrunner.”
Philip Brown, Managing Director, Head of SSA DCM Citi, said: "The World Bank is now an established member of the exclusive one billion Sterling club. This is a reflection of the World Bank’s preeminent position with sterling investors.”
Damien Carde, Managing Director, Head of Frequent Borrower Group DCM, NatWest Markets, said: "With this trade, the World Bank reinforces its position as a pre-eminent Sterling benchmark issuer. Achieving 1bn in a 5-year tenor is a difficult feat at the best of times – but achieving this result amidst an intense competing pipeline and political volatility is testament to the World Bank’s unique credit quality and broad influence amongst the Sterling investor base.”
Investor Distribution
By Geography | By Type |
UK: 78% | Banks / Bank Treasuries / Corporates: 74% |
EMEA (ex. UK): 20% | Central Banks / Official Institutions: 7% |
Asia: 2% | Asset Managers / Insurance / Pension Funds: 19% |
Transaction Summary * | |
Issuer | World Bank (International Bank for Reconstruction and Development, IBRD) |
Issuer rating | Aaa/AAA |
Amount | GBP 1 billion |
Settlement date | 31 January 2019 |
Maturity date | 7 September 2023 |
Coupon | 1.250 % per annum |
Coupon payment dates | 7 September in each year, commencing 7 September 2019 |
Benchmark | UKT 2.25% September 2023 |
Benchmark price / yield | 106.082% / 0.901 % semi-annual |
Spread vs. benchmark | +40bps |
Re-offer yield | 1.301% semi-annual |
Re-offer price | 99.757% |
Interest basis | Act/Act ICMA |
Business days | London, New York |
Listing | Luxembourg Stock Exchange |
Clearing systems | Euroclear/ Clearstream Luxembourg |
ISIN | XS1943583341 |
Joint lead Managers | Barclays, Citi, NatWest Markets |
* This press release is not an offer for sale of bonds of the International Bank for Reconstruction and Development ("IBRD"), also known in the capital markets as "World Bank". Any offering of bonds will take place solely on the basis of the relevant offering documentation including, but not limited to, the prospectus, term sheet and/or final terms, as applicable, prepared by the World Bank or on behalf of the World Bank, and is subject to restrictions under the laws of several countries. The bonds may not be offered or sold except in compliance with all such laws.
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 is the original member of the World Bank Group and operates as a global development cooperative owned by 189 nations.
The World Bank provides loans, guarantees, risk management products, and advisory services to middle-income and other creditworthy countries to support the Sustainable Development Goals and to end extreme poverty and promote shared prosperity. It also provides leadership to coordinate regional and global responses to development challenges.
The World Bank has been issuing sustainable development bonds in the international capital markets for over 70 years to fund programs and activities that achieve a positive impact. More information on World Bank bonds is available at https://treasury.worldbank.org.
