Washington, DC, May 31, 2013 - The World Bank (International Bank for Reconstruction and Development, IBRD, rated Aaa/ AAA) today priced its second benchmark-sized bond in the offshore Renminbi market. The 1.7 billion Chinese Renminbi (approximately US$277 million equivalent) 1-year fixed rate bond is due on June 17, 2014 and offers investors a semi-annual coupon of 2%.
This is the largest ever offshore Renminbi bond offering from a supranational issuer and marks the second time the World Bank has issued in this fast growing market.
The high-quality order book had a well-balanced mix of investors by region and type. The distribution was as follows: central banks / official institutions took 42%, banks and private banks 28%, and fund managers and insurance companies 30% of the transaction; 39% of the bonds were distributed to investors based in the Americas, 34% in Europe and the Middle East, and 27% in Asia.
Doris Herrera-Pol, Director and Global Head of Capital Markets at the World Bank, said: “Since the World Bank’s debut in the offshore Renminbi market in January 2011, demand for high quality assets in the currency has continued to grow as investors seek more opportunities to diversify their investments. We are very pleased to respond to this demand and provide investors a Renminbi asset of the highest credit quality. The World Bank remains committed to supporting the ongoing development of the Renminbi market.”
Anita Fung, Chief Executive Officer for Hong Kong, The Hongkong Shanghai Banking Corporation Limited, said, “As the leading manager of dim sum bond issues, HSBC is proud to be working with the World Bank again on another landmark transaction. The resounding success of the World Bank’s offshore Renminbi bond offering reflects the confidence of both the issuer and international investors in the continued growth of the offshore Renminbi capital markets.”
Issuer: World Bank
Amount: Renminbi 1.7 billion
Trade Date: May 31, 2013
Issue Date: June 17, 2013
Maturity Date: June 17, 2014
Issue Price: 100%
Coupon: 2% (semi-annual; act/365 (fixed)
Listing: Luxembourg Stock Exchange
Clearing System: Euroclear / Clearstream
Lead Manager: 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 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: (http://treasury.worldbank.org/capitalmarkets).