Washington, DC, March 29, 2011 – Today, the World Bank (International Bank for Reconstruction and Development, rated Aaa/AAA), launched a 3-year Norwegian Krone (NOK) global benchmark bond. The bonds are due on April 14, 2014 and have an annual coupon of 3.25%.
The bonds were placed with institutional investors in North America (85%) and Europe (15%). The joint lead-managers for the transaction were RBC Capital Markets and TD Securities. Co-lead managers were: BNP Paribas Fortis, Daiwa, Danske, Deutsche Bank, Rabobank, and UBS.
Amount: NOK *1 billion (USD equivalent 178.5 million)
Settlement date: April 14, 2011
Maturity date: April 14, 2014
Issue price: 100.85%
Coupon: 3.25% annually
Denomination: NOK 10,000
Listing: Luxembourg Stock Exchange
Clearing systems: Euroclear and Clearstream
This is the World Bank’s second global benchmark NOK line; in April 2010, the World Bank issued its first global NOK transaction since 2002 (NOK 3 billion 3.375% bonds due April 2015).
* On August 4, 2011, IBRD agreed to increase the principal amount with a second tranche in the amount of NOK 500 million with an issue price of 102.335% (settlement date: August 10, 2011). On November 11, 2011, IBRD agreed to further increase the principal amount with a third tranche in the amount of NOK 300 million with an issue price of 104.3875% (settlement date: November 18, 2011). The new total outstanding principal amount is NOK 1.8 billion.
Doris Herrera-Pol, Head of Global Capital Markets: “We are happy with the opportunity to establish a new 3-year benchmark in the Norwegian Krone market. This transaction was driven by demand from investors in Europe and North America interested in diversifying their currency holdings while benefitting from the safety of World Bank bonds.”
Nigel Owen, Vice President at RBC Capital Markets: “The World Bank name showed its global strength with a strong base to the orderbook established in Europe, before North American institutions added their muscle and provided the issuer with an excellent transaction.”
Paul Eustace, Vice President & Director at TD Securities: "The World Bank continues to prove its commitment to building large, liquid lines in the Norwegian market with the success of their new 3-year benchmark transaction. This underlines the borrower’s flexibility in offering investors a broad mix of currencies and tenors in which to invest. The World Bank name coupled with historically wide Norwegian swap spreads and the positive macro economic backdrop were strong motivators in attracting a broad mix of investors into the book.”
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: (www.worldbank.org/debtsecurities).