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PRESS RELEASE August 16, 2011

World Bank Launches USD 3.25 Billion 5-year Fixed Rate Global Bond

Washington, DC, August 16, 2011 – Today, the World Bank (International Bank for Reconstruction and Development, rated Aaa/AAA) priced today a USD 3.25 billion fixed rate global bond. This transaction represents the first USD benchmark in the Bank’s new financial year which started on July 1, 2011. The transaction was joint-lead managed by Barclays Capital, Deutsche Bank, J.P. Morgan, and HSBC.

The global bond carries a semi-annual coupon of 1.000% and will mature on September 15, 2016. It was priced with a spread of 22.75 basis points over the 1.5% U.S. Treasury note due July 31, 2016, which translates to a yield of 1.187%.

“We are very pleased with the strong reception for this transaction. After the extraordinary period of volatility we experienced this summer, the depth and quality of the investors in the order book shows that the demand for high quality paper from supranational issuers remains very high." said Doris Herrera-Pol, Director and Global Head of Capital Markets at the World Bank.

Investor Distribution:

By Geography
Americas 20%
Asia 44%
Europe 27%
Middle East and Africa 9%

By Investor Type
Central Banks/Official Institutions 69%
Banks/Corporates 13%
Fund Managers 11%
Other 7%

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 *3.25 billion 
Settlement date: August 24, 2011 
Maturity date: September 15, 2016 
Issue price: 99.084% 
Issue yield: 1.187% 
Coupon: 1.000%
Coupon payment dates: March 15 and September 15 (semi-annual, long first)
Denomination: USD 1,000 
Listing: Luxembourg Stock Exchange
Clearing system: Fedwire, Euroclear or Clearstream
Joint lead managers: Barclays Capital, Deutsche Bank, HSBC, J.P. Morgan
Senior co-lead managers: Daiwa, Royal Bank of Canada, UBS
Co-lead managers: BNP Paribas, Bank of America Merrill Lynch, Citi, Credit Suisse, Goldman Sachs International, Jefferies, Mitsubishi, Nomura, Morgan Stanley, Royal Bank of Scotland, SEB, Société Générale, Toronto Dominion, First Tennessee
ISIN: US459058BS14

* On September 21, 2011, IBRD agreed to increase the principal amount with a second tranche in the amount of USD 300 million with an issue price of 100.121% (settlement date: September 28, 2011). The new total outstanding principal amount is USD 3.550 billion.

Joint lead manager quotes:

“A great result for World Bank who has once again demonstrated its leadership in the USD Global benchmark market and confirmed its appeal with the international investor base as a pre-eminent AAA-rated borrower. World Bank’s strategic approach to the market means that, even with the lower 5-year US Treasury yields, the issuer has shown initiative in responding to investor appetite and identifying the best possible execution window while achieving the tightest pricing in this tenor so far this year.” said Susan Barron, Director, Frequent Borrower DCM, at Barclays Capital.

"The World Bank has once again proved to be the anchor for the new issue markets in reopening the US Dollar sector after a period of unprecedented volatility across the international capital markets. Timing reflects increased investor appetite for AAA-rated Treasury-surrogate paper, with the World Bank's offering of a new liquid benchmark demonstrating their on-going strategy of engaging investors worldwide with investor-driven deals. The World Bank's ability to garner an order book in excess of USD 5 billion in the middle of August illustrates their unparalleled market following." said Bill Northfield, Managing Director and Head of Sovereign, Supranational & Agency Origination at Deutsche Bank.

“Even during tumultuous financial markets, the World Bank continues to serve as a beacon of safety and liquidity for Central Banks, Asset Managers and Private Banks, in the capital markets. The ability to re-open the sector with such a remarkably strong deal, both in mid-August and during challenging times, only supports the World Bank's reputation as one of the most highly regarded issuers in the capital markets. With this benchmark, the World Bank sets a new watermark on pricing for the sector, as it's the richest deal printed at this maturity all year.” said John Lee-Tin, Executive Director and Head of Frequent Borrowers Debt Capital Markets at J.P. Morgan.

“The World Bank has a long track record of re-opening capital markets after periods of extreme volatility. This was another such case where investors sought the security of top quality AAA assets with assured liquidity and an impeccable credit story. The World Bank ticked all the boxes, achieving a strong over subscription and a highly diverse international distribution.” said PJ Bye, Managing Director, Public Sector Syndicate, HSBC.

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).