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PRESS RELEASE March 26, 2009

USD 6 Billion 3-Year World Bank Fixed Rate Global Bond

Washington, DC, March 26, 2009 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) priced today a USD 6 billion global fixed rate note, its second USD benchmark in 2009. This global bond was joint-lead managed by Citi, HSBC, J.P. Morgan and Royal Bank of Scotland. It is the largest bond issue ever launched by the World Bank.

The bonds were priced with a spread of 82 basis points over the corresponding U.S. Treasury note, which translates to a yield of 2.095 %, paying a semi-annual coupon of 2%.

“This financing is evidence of the appreciation investors and dealers have for the strength of the World Bank’s finances and its members’ strong support for its work as a development cooperative. The World Bank has been a major issuer in the international capital markets for more than 60 years. We remain committed to the value proposition that investors have appreciated from the World Bank as an issuer over the past decades – ensuring superior performance and liquidity of our bonds by tailoring their terms to address investors’ needs and preferences. We look forward to continuing our close collaboration with investors, the financial institutions that help place our bonds, and other stakeholders," said Doris Herrera-Pol, Director and Global Head of Capital Markets at the World Bank.

Within an environment of improved tone in the bond markets, the World Bank began discussing funding opportunities with potential lead managers and selected investors. After recently issuing a USD 3 billion 2-year floating rate note, with this offering, the World Bank is fulfilling investor demand for a longer maturity in a fixed rate format.

The World Bank Treasury announced the transaction during the U.S. afternoon on Tuesday 24th of March. Investor interest was evident early and grew strongly, with the order book reaching over USD 3 billion before New York morning on Wednesday. Building on the successful strategy of the recent World Bank floating rate note, the team decided to allow time for the book-building process so that new investors had time to join. On Thursday morning, with over USD 7 billion in orders, the World Bank closed the books at USD 6 billion.

The final order book included over 120 accounts, achieving strong diversification across investor type and geography.

Investor Distribution:

By Geography
Asia 62%
Americas 14%
Europe 13%
Middle East and Africa 11%

By Investor Type
Central Banks/Official Institutions 71%
Bank/Corporates 18%
Fund Managers 09%
Pension Funds/Insurers 02%

Summary Details:

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

Issuer rating: Aaa/AAA

Amount: USD *6 billion
Settlement date: April 2, 2009
Coupon: 2% (semi-annual)
Maturity Date: April 2, 2012
Issue price: 99.725%
Issue yield: 2.095% 
Listing: Luxembourg Stock Exchange
Clearing systems: DTC, Fedwire, Euroclear or Clearstream

ISIN/CUSIP: US459058AH67 / 459058AH6

*On January 19, 2010, IBRD agreed to increase the principal amount of the bond by the issue of a second tranche for an amount of USD 200 million with an issue price of 101.80% (settlement date: January 26, 2010). On February 17, 2010, IBRD agreed to further increase the principal amount of the bond by the issue of a third tranche for an amount of USD 150 million with an issue price of 101.922% (settlement date: February 26, 2010). The new total outstanding principal amount is USD 6.350 billion.

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. 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.

Philip Brown, Managing Director & Head of Public Sector Fixed Income Origination, Citi: "This is a spectacular return to large scale benchmark funding for the World Bank and demonstrates the huge support which the issuer has within rates portfolio's worldwide".

Jeff Diehl, Managing Director, Global Head, Public Sector Capital Markets, HSBC: "The long-awaited return by the World Bank to the fixed USD Global bond market was a success in every aspect. The order book of over 120 accounts read like a "who's who" list of investors. The scarcity value of this premier name attracted a number of accounts that we have not seen in SSA transactions in quite some time, if ever. This is another key transaction, and the largest ever from the World Bank, in a long string of successful market operations that enables the World Bank to pursue its important mission of poverty reduction. We congratulate the World Bank funding team for another flawless and strategic execution in a challenging market and are honored to have been a joint lead manager for this especially noteworthy transaction."

John Lee-Tin, Executive Director, Debt Capital Markets, J.P. Morgan: "With this latest transaction, the World Bank continues to set the benchmark for the premium class of issuers in the international capital markets. In addition to being able to set the pricing pace for Supranational and Sovereign issuers, the World Bank still has wide investor appeal across the globe, able to garner over USD 4 billion orders in less than 24 hours, and almost an additional USD 3 billion before closing the books."

Jamie Stirling, Senior Vice President, Royal Bank of Scotland: "With such a large, high quality orderbook, including so many central banks, this transaction has attracted many of the traditional buyers who have been absent in recent USD sovereign and supranational benchmark transactions. The ability of the World Bank to attract these investors underscores the continued superior name recognition of this prestigious issuer."

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: