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PRESS RELEASE January 19, 2011

World Bank Launches USD 5 Billion 5-year Fixed Rate Global Bond

Washington DC, January 19, 2011 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) priced today a USD 5 billion global fixed rate note, its first USD benchmark in 2011. This global bond was joint-lead managed by BoA / Merrill Lynch, Goldman Sachs International, Morgan Stanley, and RBC Capital Markets. 

The global bond carries a semi-annual coupon of 2.125% and will mature on March 15, 2016. It was priced with a spread of 28 basis points over the 2.125% U.S. Treasury note due December 31, 2015, which translates to a yield of 2.207%.

Doris Herrera-Pol, Director and Global Head of Capital Markets at the World Bank: “We are grateful for the reception from investors all over the world for our first USD global bond of the year. The final order book, with 110 orders from investors in 35 countries, is a strong show of investor support to the World Bank as an issuer and as a development cooperative.”

Investor Distribution

By Geography
Americas 33%
Asia 30%
Europe 21%
Middle East and Africa 16%

By Investor Type
Central Banks/Official Institutions 60%
Banks/Corporates 19%
Fund Managers 15%
Pension Funds/Insurers 5%

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.

Transaction Summary

Issuer: World Bank (International Bank for Reconstruction and Development, IBRD)
Issuer Rating: Aaa/AAA
Amount: USD 5 billion
Settlement Date: January 27, 2011
Coupon: 2.125%
Coupon Payment Dates: March 15 and September 15 (semi-annual, short first coupon)
Maturity Date: March 15, 2016
Issue Price: 99.605 %
Issue Yield: 2.207%
Listing: Luxembourg Stock Exchange
Clearing Systems: Fedwire, Euroclear or Clearstream
Joint Lead Managers: BofA Merrill Lynch, Goldman Sachs International, Morgan Stanley, RBC Capital Markets
Senior Co Lead Managers: Barclays Capital, Credit Suisse, Daiwa, HSBC
Co Lead Managers: BNP, Citi, Deutsche Bank, FTN, Jefferies, Royal Bank of Scoland, SEB, TD, UBS, Wells Fargo
ISIN: US459058BB88

Nick Dent, Head of SSA Rates Syndicate, Bank of America Merrill Lynch: “World Bank has done it again. Upsized, priced through guidance with the biggest SSA book in over a year and all within the day. Their platinum status in the capital markets has been proven once again and tireless work with investors richly rewarded.”
Joint Lead Manager Quotes

Martin Weber, Head of SSA Origination and Syndicate, Goldman Sachs: "The World Bank has reaffirmed its status as the most sought after name in the SSA market with another hugely successful USD benchmark. The quality of the book was exceptional, allowing for both upsizing and pricing at the tight end of initial guidance. The final result is a testament to the strength of the World Bank franchise in the USD benchmark market."

Andrea Dorfzaun, Vice President, Sovereign Supranational Agency Group, Morgan Stanley: "The World Bank has again demonstrated its unrivaled access to the global investor base, and confirmed its position as the pre-eminent flight to quality borrower. The deal enjoyed strong support from both official and real money investors across the globe, enabling IBRD to upsize to USD 5 billion, tighten pricing, while still maintaining a high quality book that will ensure strong secondary performance. We congratulate the World Bank team on an extremely successful start to 2011."

Jigme Shingsar, Managing Director, Head of US SSAs, RBC Capital Markets: “Perhaps we are getting excited about things that are common for World Bank benchmarks but it is still difficult not to go on and on about the extremely high quality of the investor base, the sheer magnitude of the book, the breadth of distribution, etc etc. That they can make such a trade (upsized to 5 billion, pricing tightened from initial guidance) look easy is a great credit to the unique status of the World Bank as a pre-eminent borrower.” 

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. 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: