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PRESS RELEASE February 12, 2014

World Bank Issues a Quickly Oversubscribed USD 5 billion 2-Year USD Benchmark

Washington, DC, February 12, 2014 – The World Bank (IBRD, Aaa/AAA) today priced a USD 5 billion long 2-year fixed rate global bond. This transaction is the World Bank’s second USD benchmark offering of 2014 following a USD 4 billion 5-year transaction in January. The transaction was increased from the initially targeted minimum size of USD 2 billion to USD 5 billion to satisfy the overwhelming investor demand, particularly from the Central Bank community. This upsized and oversubscribed transaction has helped to reopen the USD Global market post the Chinese New Year holidays and has confirmed once again the name recognition of the World Bank in the global capital markets.

The joint-lead managers are Bank of America Merrill Lynch, Credit Suisse, HSBC and TD Securities.

The long 2-year USD benchmark carries a semi-annual coupon of 0.500% and matures on May 16, 2016. It offers investors a yield of 0.522%, which is equivalent to a spread of 18.7 basis points over the 0.375% U.S. Treasury note due January 2016.

“We have been studying the market looking for a good opportunity to issue our second USD benchmark for the year, and took advantage of the recent sell off in yields to proceed with the trade. We are very pleased with the strong demand - seeing orders more than three times above our initial target - principally from our core investor base. We're grateful for the support we get from our investors and bank partners for the World Bank's development mandate and the demonstration that investors continue to value the safety of the World Bank“, said Doris Herrera-Pol, Director and Global Head of Capital Markets, World Bank Treasury.

Transaction Summary:

Issuer: World Bank (International Bank for Reconstruction and Development, IBRD)
Issuer rating: Aaa/AAA
Amount: USD 5 billion
Settlement date: 20 February 2014
Coupon: 0.500%
Coupon payment dates: 16 May and 16 November(short first on 16 May 2014)
Maturity date: 16 May 2016
Issue price: 99.951%
Issue yield: 0.522%
Listing: Luxembourg Stock Exchange
Clearing system: Fedwire, Euroclear, Clearstream
ISIN: US459058DM26
Joint lead managers: Bank of America Merrill Lynch, Credit Suisse, HSBC and TD Securities
Senior Co-lead managers: BMO Capital Markets, Castle Oak Securities, FTN Financial Securities
Co-lead managers:Barclays, BNP Paribas, Citigroup, Deutsche Bank, Daiwa, Goldman Sachs, InCapital, Jefferies, J.P. Morgan, Morgan Stanley, Nomura, RBC Capital Markets, SEB

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 as a cooperative institution it is able to fund its activities as a provider of financial services to its members on highly attractive terms.

Joint lead manager quotes:

“It’s great to be involved in these trades. The World Bank has over a number of years developed a finely honed and effective benchmark program that has a recurring habit of providing exactly what the market needs at the right time”, said Raymond Seager, Head of SSA DCM at Bank of America Merrill Lynch.

“The World Bank has once again cemented its status as one of the highest quality borrowers in the USD market, bringing an upsized USD 5 billion long 2-year benchmark, its largest outing at this tenor since 2009. The borrower was extremely quick to respond to the more constructive tone in the SSA market on Tuesday following Janet Yellen’s testimony, with the resulting sell-off in rates combined with continued demand from central banks supporting the asset class. The extremely high quality orderbook saw strong support from the central bank community that allowed for an upsized USD 5 billion transaction”, said Greg Arkus, Managing Director and Head of SSA DCM at Credit Suisse.

“World Bank reacted to an extreme shortage of short dated SSA supply thus far in 2014. The long 2-year maturity was a perfect fit for official reserve manager and bank treasury portfolios, ensuring a very high quality oversubscribed book and an upsized deal amount that will ensure ongoing liquidity”, said PJ Bye, Managing Director, Global Head of Public Sector Syndicate at HSBC.

“The World Bank was very nimble in responding to constructive market conditions and in accessing an undersupplied part of the USD curve. The upsized USD 5 billion transaction and the high quality orderbook confirms the unique appeal the World Bank has among institutional investors and central banks more specifically”, said Salvatore Aloisi, Director, Frequent Borrowers at TD Securities.

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: (www.worldbank.org/debtsecurities).