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PRESS RELEASE May 18, 2010

World Bank Launches USD 4.5 Billion 5-year Global Bond

Washington, DC, May 18, 2010 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) priced today a USD 4.5 5-year global fixed rate bond, its second USD benchmark in 2010. This global bond was joint-lead managed by Barclays Capital, Credit Suisse, HSBC and J.P. Morgan. This bond carries a coupon of 2.375%, payable semiannually, and will mature on May 26, 2015. It was priced with a spread of 32.45 basis points over the 2.50% U.S. Treasury note due April 30, 2015, which translates to a yield of 2.472%.

In a market characterized by volatility and credit concerns, investors welcomed the opportunity to place money in bonds from a highly creditworthy issuer. The order book grew quickly over the course of the 24 hour marketing period reaching a total size of USD 5.6 billion in over 140 orders world-wide. 

"We are delighted with the strong investor response to our transaction, especially considering the difficult market backdrop.” said Doris Herrera-Pol, Director and Global Head of Capital Markets at the World Bank.

Investor Distribution:

By Geography
Asia 48%
Americas 27%
Europe 20%
Middle East and Africa 5%

By Investor Type
Central Banks/Official Institutions 60%
Banks/Corporates 8%
Fund Managers 29%
Pension Funds/Insurers 3%

Transaction Summary:

Issuer: World Bank (International Bank for Reconstruction and Development, IBRD)
Issuer rating: Aaa/AAA
Amount: USD *4.5 billion
Settlement date: May 26, 2010
Maturity date: May 26, 2015
Coupon: 2.375% (semi-annual) 
Issue price: 99.546%
Issue yield: 2.472% 
Listing: Luxembourg Stock Exchange
Clearing systems: Fedwire, Euroclear or Clearstream
Joint lead managers: Barclays Capital, Credit Suisse, HSBC, J.P. Morgan 
Senior co lead managers: Bank of America-Merrill Lynch, Daiwa, Royal Bank of Canada, UBS
Co-lead managers: Citi, Deutsche Bank, Goldman Sachs, Morgan Stanley, Nomura, Royal Bank of Scotland, SEB, Societe Generale, TD Securities, Wachovia. 
ISIN: US459058AR40

On July 5, 2011, the principal amount was increased by a second tranche for an amount of USD 150 million with an issue price of 102.092% (settlement date: March 11, 2011). The new total outstanding principal amount of the bond is USD 4.650 billion.

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 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.

Joint lead manager quotes:

Sean Taor, Head of Rates Syndicate, Barclays Capital: “The IBRD brand has been carefully nurtured over the years and this transaction has proven its strength and following once more. To get this size done at such a good level versus peers and amongst such market volatility is an unequivocal vote of confidence from the market.”

Edward Mizuhara, Head of SSA Syndicate, Credit Suisse: “We were delighted to have been involved in this highly successful transaction for the World Bank. This was the World Bank’s first USD 5-year Global since October 2008 and as such represented a rare opportunity for investors to extend duration on the World Bank’s curve. Consequently, the deal benefited from strong demand garnering a book of in excess of USD 5.5 billion, with the highest quality of accounts participating. The success of the deal following extremely volatile market conditions reflects how highly investors value the World Bank’s credit.”

PJ Bye, Managing Director, Syndicate, HSBC: “World Bank has once again taken a leadership role in reopening the global dollar market after an extreme period of volatility. The book is extremely diverse having tempted many investors off the sidelines who were waiting for the right credit to re-establish confidence in the sector.”

John Lee-Tin, Jr., Executive Director Debt Capital Markets, J.P. Morgan: “With the launch of this new 5-year Global Benchmark, the World Bank continues to demonstrate that its appeal to investors is both global and vast. A tally of over 140 orders for greater than USD 5 billion in demand signifies that investors truly appreciate not only the World Bank’s long-standing credit quality, but also its serial strategic approach to issuing bonds in the international capital markets.”

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 186 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 overriding goal is to achieve major, sustainable improvements in standards of living worldwide. It has been issuing bonds in the international capital markets for over 60 years to fund its activities. The World Bank is one of the most recognized and innovative borrowers in the international capital markets. The World Bank designed and issued the first global bond in 1989. Information on bonds for investors is available on the World Bank Treasury website: (www.worldbank.org/debtsecurities).