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PRESS RELEASE March 5, 2009

USD 3 Billion 2-Year World Bank Floating Rate Global Bond

Washington, DC, March 5, 2009 – The World Bank (International Bank for Reconstruction and Development, IBRD, AAA/Aaa) priced today a USD3 billion global floating rate note, its first USD benchmark in 2009, and the first 2-year floating rate note the World Bank has issued in the global-bond format it designed and first launched in 1989. This inaugural 2-year floating rate note was joint-lead managed by Citibank, HSBC, Morgan Stanley and Royal Bank of Scotland.

The bonds pay interest quarterly at an annualized rate of 3-month LIBOR + 17.5 basis points.  The issue price is par (100%).

“The depth and breadth of the order book is impressive. Clearly, debt markets are open and functioning well for top-tier credits willing to listen to investors and respond to their requirements.  We and the bankers leading this deal adapted the origination process to make sure that this happened, and it produced a distribution profile that should underpin sustained liquidity in the aftermarket," said World Bank Treasurer Kenneth Lay.

Following a period of discussions with the lead managers and selected investors over the last few weeks, the World Bank Treasury announced the benchmark floating rate transaction on Friday, 27 February, with an expected minimum size of USD1 billion. The lead managers immediately started receiving indications of interest from investors. Over the next few business days, investor interest grew rapidly - including from many new U.S. and European investors who had not purchased World Bank bonds recently.

By Wednesday morning, preliminary orders from accounts reached more than USD1.5 billion. On Wednesday, 4 March, after books opened for firm orders and guidance was announced at 3-month USD LIBOR +17.5 basis points, demand quickly jumped to over USD2.5 billion. The books remained open until Thursday, 5 March, in order to ensure that the broadest possible range of investors had the opportunity to participate. By Thursday morning, the book was over USD3.5 billion, at which point a decision was made to close the book, and price a USD3 billion transaction at guidance during New York morning.

The final order book included over 100 accounts, achieving strong diversification across investor type and geography.

Investor Distribution:

By Geography
Asia 46%
Americas 32%
Europe 13%
Middle East and Africa  9%

By Investor Type
Banks / Corporates 41%
Central Banks / Official Institutions 27%
Fund Managers 27%
Pension Funds / Insurers  5%

Summary Details:

Issuer: World Bank (International Bank for Reconstruction and Development, IBRD)

Issuer rating: Aaa/AAA

Amount: USD3 billion
Settlement date: March 12, 2009
Coupon: 3-month USD LIBOR + 17.5 basis points
Maturity Date: March 4, 2011
Issue price: 100%
Interest payment dates: March 4, June 4, September 4, December 4 (with short first coupon on 4 June 2009)
Listing: Luxembourg Stock Exchange
Form of notes: Registered 
Clearing systems:
 DTC, Euroclear or Clearstream

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

The World Bank expects to borrow around USD35 billion in its 2009 fiscal year which ends on June 30, 2009, of which it has already raised USD28 billion.

The World Bank designed and issued the first global bond in 1989. Information on the World Bank, its global bonds and a variety of other offerings available for investors is on the World Bank Treasury website

The World Bank is a global development cooperative owned by its member countries. Its purpose is to help its members achieve equitable and sustainable economic growth in their economies and to find solutions to regional and global problems in economic development and environmental sustainability, all with a view to reducing poverty and improving standards of living. The International Bank for Reconstruction and Development (IBRD), rated Aaa/AAA (Moody’s/S&P) is owned by 185 countries. It is the oldest and largest entity in the World Bank Group and provides its members with financing, risk management products, and other financing services, as well as specialized expertise and strategic and convening services requested by its member countries. To fund this activity, IBRD has been issuing debt securities in the international capital markets for 60 years. The World Bank is one of the most recognized and innovative borrowers in the international capital markets. More information about the World Bank and its activities in the capital markets is available on the web at: