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PRESS RELEASE November 6, 2013

World Bank Issues a Euro 1 billion Global Bond

Washington, DC, November 6, 2013 – The World Bank (IBRD, Aaa/AAA) priced today a 3-year benchmark bond denominated in euro (EUR).  The bond carries an annual coupon of 0.375% and matures on December 15, 2016.  It offers investors a yield of 0.412%, which is equivalent to a spread of 15.6 basis points over the 1.250% German bunds due October 2016. The EUR 1 billion bond proceeds will be used in member countries for development programs that promote sustainable economic growth with the goal of overcoming poverty and improving the standards of living for people worldwide.

The bond was announced on Tuesday 5th November and was initially marketed as a EUR Benchmark offering with initial price thoughts (IPTs) of mid swaps minus 28 basis points (MS-28bps) area. Price guidance of MS-28bps was released the following day at the London open, in line with IPTs. The book grew steadily to exceed EUR 1 billion by the London afternoon.  Books closed at 1.45pm London time in excess of EUR 1.2 billion and the spread was set at MS-28bps.

The order book accumulated over 50 orders, achieving very strong diversification in terms of geography and investor type. This bond achieved the tightest spread versus mid-swap for a 3-year EUR Benchmark bond this year-to-date in the SSA space.

As the World Bank’s first EUR benchmark since 2009, this issue continues the World Bank’s strategy of engaging investors in a variety of bond markets around the world, while maintaining a cost-effective level of financing.  

“We are extremely pleased with this transaction.  With this issue we have repositioned the World Bank credit among our peers in the euro market.  The response from investors has been strong and is consistent with our strategy of diversifying the Bank's investor base”, said Doris Herrera-Pol, Director and Global Head of Capital Markets, World Bank Treasury.

This third euro-denominated benchmark transaction was lead-managed by BNP Paribas, Credit Agricole, Credit Suisse and Goldman Sachs International.

The present transaction fits within 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.

Details on the distribution of the bonds by investor type and location are: 

By Geography
Americas 13%
Asia 12%
Europe 70%
Middle East and Africa 5%

By Investor Type
Central Banks / Official Institutions 55%
Banks/Corporates 26%
Asset Managers 12%
Insurance / Pension Funds 7%

Transaction Summary:


World Bank (International Bank for Reconstruction and Development, IBRD)

Issuer rating:



EUR 1 billion

Settlement date:

13 November 2013



Coupon payment dates:

15 December (annual)

Maturity date:

15 December 2016

Issue price:


Issue yield:





Luxembourg Stock Exchange

Clearing system:

Euroclear, Clearstream

Joint lead managers:

BNP Paribas, Credit Agricole, Credit Suisse and Goldman Sachs

Senior Co-lead managers:

DZ Bank, Banca Akros, Nomura, SEB

Co-lead managers:

Barclays, Deutsche Bank, HSBC, JP Morgan, Natixis, RBC, RBS and SocGen

Joint lead manager quotes:

“The World Bank is to be commended for being the first of the USD based SSA issuers to take advantage of the attractive issuance climate and FX basis swap improvement to launch their first € benchmark since 2009. Coming at a spread of only 11bp over the interpolated German OBL curve and tighter than any other issuer on a swaps basis, this transaction illustrates the quality of the World Bank credit. The bond will act as an important pricing reference for subsequent SSA € issuers if attractive issuance conditions remain for the remainder of 2013 and into 2014”, said Jamie Stirling, Managing Director, Co-Head SSA DCM at BNP Paribas.

“The World Bank, a rare borrower in the EUR capital markets, as their last deal dates back from 2009, has again demonstrated the unique appeal of their credit by attracting demand from a wide range of prime investors through this new 3-year benchmark. This was a great opportunity for the World Bank to further diversify their distribution with European investors”, said Pierre Blandin, Managing Director, Global Head of SSA DCM at Credit Agricole CIB.

“This is World Bank's third EUR transaction and their first foray into the EUR market since 2009.  This transaction attracted very high quality demand and was able to garner attention at the front end of the curve as investors wrestle with the low yield environment.  World Bank was able to achieve the tightest pricing among its peer group this year positioning its credit very well.  Credit Suisse was delighted to have been involved in this very prestigious issue”, said Greg Arkus, Managing Director, Head of SSA Origination at Credit Suisse.

The World Bank has once again demonstrated its leadership position in the capital markets with a successful new 3yr EUR benchmark, their first transaction in this currency since 2009. The success of the trade, in spite of a low rate environment, shows that the World Bank can rely on a highly diversified investor base. The pricing outcome represents the tightest spread to MS achieved this year and illustrates the appeal of the World Bank’s name to investors”, said Lars Humble, Managing Director, Head of SSA Syndicate at Goldman Sachs.

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 on bonds for investors is available on the World Bank Treasury website: (