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PRESS RELEASE October 19, 2011

World Bank Launches USD 4 Billion 2-year Fixed Rate Global Bond

Washington, DC, October 19, 2011 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) priced today a USD 4 billion fixed rate global bond. This transaction represents the first 2-year USD benchmark from any supranational borrower in 2011. The transaction was joint-lead managed by BNP Paribas, Citigroup, Daiwa Capital Markets and RBC Capital Markets.

The global bond carries a semi-annual coupon of 0.500% and will mature on November 16, 2013. It was priced with a spread of 24 basis points over the 0.125% U.S. Treasury note due September 30, 2013, which translates to a yield of 0.506%.

“We are very pleased by the strong market reception for this transaction, particularly among US investors who clearly recognize the high quality, diversity value our name provides." said Doris Herrera-Pol, Director and Global Head of Capital Markets at the World Bank.

Investor Distribution:

By Geography
Asia 26%
Americas (Non US) 25%
US 19%
Europe 17%
Middle East and Africa 13%

By Investor Type
Central Banks/Official Institutions 74%
Banks/Corporates 15%
Fund Managers 11%

This 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 *4 billion 
Settlement date: October 26, 2011 
Maturity date: November 16, 2013 
Issue price: 99.988% 
Issue yield: 0.506% 
Coupon: 0.500%
Coupon payment dates: May 26 and November 26(semi-annual, short first)
Denomination: USD 1,000 and internal multiples thereof
Listing: Luxembourg Stock Exchange
Clearing system: Fedwire, Euroclear or Clearstream
Joint lead managers: BNP Paribas, Citigroup, Daiwa Capital Markets and RBC Capital Markets
Co-lead managers: FTN Financial, Jefferies & Co, CastleOak Securities
ISIN: US459058CB79

* On November 21, 2011, IBRD agreed to increase the principal amount with a second tranche in the amount of USD 2.25 billion with an issue price of 99.964% (settlement date: November 30, 2011). The new total outstanding principal amount is USD 6.250 billion.

Joint lead manager quotes:

"This transaction was not only a tremendous success but was also the tightest priced public benchmark from a supranational issuer in 2011 to date. Amassing such a large volume of orders at such a tight price is a testament to the depth IBRD's investor base as well as IBRD's perfect timing in responding to market conditions." said Nathaniel Timbrell-Whittle, Co-Head, Global SSA DCM, BNP Paribas.

"Another fantastic demonstration of the franchise power of IBRD in the dollar market, not only with a huge number of central banks across the globe, but it was particularly pleasing with this transaction to also see the traction which World Bank now has among domestic US investors." said Philip Brown, Head of Public Sector DCM, Citi.

"World Bank once again finds the correct solution to satisfy global investor appetite. The orderbook was of the highest quality with excellent US real money participation. We always expected a strong bid from the Central Bank community but the depth, involvement and order sizes were second to none." said Christopher Brown, Managing Director, Head of Head of Fixed Income, Daiwa Capital Markets.

"Another resounding success for World Bank and a textbook example of excellent investor marketing followed by the right product at the right time. We were extremely pleased with the strong response from the US investor base which provides a nice complement to the already superb franchise with official institutions globally." said Jigme Shingsar, Managing Director, Head of US SSAs, RBC 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 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: (