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PRESS RELEASE February 7, 2012

World Bank Launches GBP 800 Million Global Bond

Washington, DC, February 7, 2012 – The World Bank (IBRD, Aaa/AAA) priced today a GBP 800 million global bond. This global bond was joint-lead managed by Barclays Capital, Deutsche Bank and RBC Capital Markets.

The bond carries an annual coupon of 0.875% and will mature on December 17, 2014. It was priced with a spread of 42 basis points over the 5% UK Gilt due September 7, 2014, providing an annual yield of 0.877%.

“This Sterling transaction attracted demand from around the world looking for high-quality, liquid assets in GBP. The final order book had 57 orders from investors in 16 countries; we appreciate the strong show of investor support for the World Bank as a rare issuer in the Sterling market.” said Doris Herrera-Pol, Director and Global Head of Capital Markets at the World Bank.

Investor Distribution:

By Geography
UK 40%
Europe 24%
Asia 21%
Americas 9%
Middle East and Africa 6%

By Investor Type
Central Banks/Official Institutions 43%
Banks/Corporates 32%
Insurance/Pension Funds 13%
Asset Managers 12%

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: GBP* 800 million 
Settlement date: February 15, 2012 
Maturity date: December 17, 2014 
Issue price: 99.995% 
Issue yield: 0.877% (annual)
Coupon: 0.875% (annual act/act ICMA, short first coupon)
Denomination: GBP 1,000 and internal multiples thereof
Listing: Luxembourg Stock Exchange
Clearing system: Euroclear / Clearstream
Joint lead managers: Barclays Capital, Deutsche Bank, RBC Capital Markets
ISIN: XS0746026227

* On April 24, 2012, the World Bank increased the nominal amount of the notes with a second tranche for an amount of GBP 100 million with an issue price of 100.164% (settlement date: May 2, 2012). On May 3, 2012, the transaction was further increased with a third tranche for an amount of GBP 150 million with an issue price of 100.218% (settlement date: May 14, 2012). The new total outstanding principal amount is GBP 1.150 billion. 

Joint lead manager quotes:

“A very successful return to the Sterling benchmark market for the World Bank. An intra-day execution to price at the tight end of the original price guidance while achieving an oversubscribed and well diversified order book once again highlights World Bank’s appeal as a pre-eminent AAA-rated issuer.” said Susan Barron, Director, Frequent Borrower Origination, Barclays Capital.

“The World Bank has executed another spectacular transaction, this time via its debut sterling offering of the year. Overwhelming real money demand from the start despite fine pricing encouraged the World Bank to upsize the bond from its initial target. We have been very impressed by the depth and breadth of demand from both UK and international investors. This once again underlines the World Bank's premier issuer status and reflects the rarity value of IBRD Sterling paper. Deutsche Bank is indeed honored to partner with the World Bank on this landmark offering.”said Bill Northfield, Managing Director, Head of Sovereign, Supranational & Agency Origination, Deutsche Bank.

"World Bank once again sets a benchmark for tight pricing, breadth of distribution and oversubscription this year - only this time in the GBP market. We were very pleased to be part of this glittering return to Sterling which is now part of a track record of achievement that any issuer would aspire to." said Jigme Shingsar, Managing Director, SSA DCM, RBC Capital Market. 

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).