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PRESS RELEASE April 20, 2012

World Bank Launches Canadian Dollar 400 million 3-year Global Bond

Washington, DC, April 20, 2012 – Today, the World Bank (International Bank for Reconstruction and Development, rated Aaa/AAA), launched a CAD 400 million 3-year global bond. 

The bonds were placed with institutional investors via RBC Capital Markets as the sole lead manager.

“This is a very special transaction for us. The Canadian Dollar global market is strategically important for us. After monitoring the market for a few years, we were able to return to the market and offer investors a liquid World Bank CAD global bond. We are very grateful for the positive reception for our transaction from a very broad range of investors both geographically and by type of investor,” said Andrea Dore, Lead Financial Officer, Capital Markets at the World Bank.

“You can't be a global currency if you don't have a global issuer. As we watched global demand for CAD grow it became clear that there was a unique opportunity for an issuer who could appeal to both domestic and offshore investors. World Bank's unquestioned credit quality and truly global investor penetration made it the ideal way to re-open the global market for larger more liquid CAD issuance from a supranational,” said Jigme Shingsar, Managing Director, Head of US SSAs, RBC Capital Markets.

Transaction Summary:

Issuer: World Bank (International Bank for Reconstruction and Development, IBRD)
Amount:  CAD *400 million 
Settlement date: April 30, 2012 
Maturity date: April 30, 2015 
Issue Price: 99.959% 
Spread to Benchmark: 25 basis points over the Canadian Government 1% bond due February 2015
Re-offer Yield: 
1.714%
Coupon
: 1.70% 
Denomination:  CAD 1,000 and multiples thereof
Listing: Luxembourg Stock Exchange 
Clearing system
: CDS, and DTC, Euroclear / Clearstream


Investor Distribution:

By Geography
Asia 30%
Canada 25%
Americas (ex Canada) 24%
Europe, Middle East and Africa 21%

By Investor Type
Central Banks/Official Institutions 47%
Banks Treasuries 35%
Asset Managers 18%

* On September 7, 2012, IBRD agreed to increase the principal amount with a second tranche in the amount of CAD 250 million with an issue price of 100.700% (settlement date: September 14, 2012). The new total outstanding principal amount is CAD 650 million. 

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 188 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).


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