Skip to Main Navigation
PRESS RELEASE October 28, 2010

World Bank Launches GBP 600 Million 3-year Fixed Rate Global Bond

Washington, DC, October 28, 2010 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) priced today a GBP 600 million global fixed rate note. This global bond was joint-lead managed by Deutsche Bank, RBC Capital Markets and The Royal Bank of Scotland.

The bond carries an annual coupon of 1.25% and will mature on December 10, 2013. It was priced with a spread of 35 basis points over the 4.50% UK Gilt due March 7, 2013, providing an annual yield of 1.27%.

Following the stronger than expected UK Q3 GDP release, the World Bank was able to take advantage of positive market conditions and return to the Sterling market to issue its largest Sterling bond since 2000. Investors were attracted by the name and high quality credit of the World Bank, the rarity value, and benefit of being a repo-eligible security with the Bank of England. The transaction received strong interest from UK banks, building societies, and asset managers, as well as from central banks in search of Sterling assets for their currency reserves.

The World Bank initially set the maximum target size at GBP 500 million. But the order book quickly grew to over GBP 800 million with high-quality orders from over 40 investors. In response, the World Bank agreed to increase the target size and set the final size at GBP 600 million.

“Providing investors with high-quality products that meet their preferences for currency and maturity is an important part of our strategy. We were glad to come back to the Sterling market, and appreciate the positive reception from investors looking to diversify their currency and credit exposure and include World Bank Sterling bonds in their portfolios.” said Doris Herrera-Pol, Director and Global Head of Capital Markets at the World Bank.

Investor Distribution:

By Geography
UK 59%
Europe (Other) 8%
Asia 18%
Middle East and Africa 5%
Americas 7%

By Investor Type
Central Banks/Official Institutions 23%
Banks/Corporates 41%
Fund Managers 32%
Pension Funds/Insurers 4%

Transaction Summary:

Issuer: World Bank (International Bank for Reconstruction and Development, IBRD)
Issuer rating: Aaa/AAA
Amount: GBP *600 million
Settlement date: November 5, 2010
Maturity date: December 10, 2013
Coupon: 1.25% (annual act/act ICMA, long first coupon)
Re-offer price: 99.939%
Re-offer yield: 1.27% (annual)
Re-offer vs Benchmark: UKT 4.50% 7 March 2013 +35 bps
Listing: Luxembourg Stock Exchange
Clearing systems: Euroclear / Clearstream
Lead managers: Deutsche Bank, RBC Capital Markets,The Royal Bank of Scotland
ISIN: XS0556054327

* On January 5, 2011, IBRD agreed to increase the principal amount with a second tranche in the amount of GBP 300 million with an issue price of 99.077% (settlement date: January 12, 2011). On February 8, 2011, IBRD agreed to further increase the principal amount with a third tranche in the amount of GBP 150 million with an issue price of 98.078% (settlement date: February 16, 2011). The new total outstanding principal amount is GBP 1.050 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 high-quality liquid instruments to investors globally. 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:

Bill Northfield, Head of Sovereign, Supranational and Agency Originations, Deutsche Bank: “The World Bank's return to the benchmark Sterling markets after a near 3-year absence has been an outstanding success, underlining their favoured status amongst international investors. This is by far the largest World Bank Sterling benchmark in over ten years. We are very impressed by the speed of the book building process, and by the quality and diversity of investors requesting bonds, which delivered a larger-than-expected new benchmark. The rarity of World Bank Sterling paper and the liquidity available here played a key role in this success and we are honoured to be awarded a role on this new World Bank offering.”

Jigme Shingsar, Managing Director, SSA DCM, RBC Capital Markets: "A spectacular return to the Sterling market by a Sterling issuer who once again re-affirmed their status as a marquee borrower. This transaction hit all the right buttons - credit quality, rarity value, the longest list of potential buyers, etc. etc. We never cease to be impressed by the number and quality of real money investors - both central banks and others - who materialize in World Bank trades in a manner we rarely see in other trades."

Jamie Stirling, Managing Director, Frequent Borrower Group, The Royal Bank of Scotland: “This transaction exceeded all expectations as the World Bank returned to the Sterling market after an absence of almost 3 years. Significantly upsizing to a GBP 600 million deal size as well as pricing at the tight end of initial guidance, the transaction capitalised on the demand from UK investors for Bank of England repo eligible securities. This was well illustrated by the 59% distribution into the UK with over 20 UK domestic investors in the order book, which were well complemented by the World Bank's traditional core central bank investor base and others.”

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 187 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. Information for investors is available on the World Bank Treasury website: (