Learn how the World Bank Group is helping countries with COVID-19 (coronavirus). Find Out

PRESS RELEASE February 4, 2015

World Bank Raises USD 4 billion with a record breaking 7-Year Global Bond

Washington, DC, February 4, 2015 – The World Bank (IBRD, Aaa/AAA) priced a record 7-year USD Global benchmark transaction, raising USD 4 billion in a single tranche. This is the largest 7-year bond ever priced in the USD SSA market, and the joint-largest USD benchmark transaction in 2015 year to date. The transaction was significantly oversubscribed, with a final orderbook in excess of USD 5 billion, with strong international investor participation. This is the World Bank’s fourth USD benchmark offering of its 2014-2015 fiscal year, following from the highly successful record 10-year transaction in November, 2014. The joint-lead managers for this global bond are Bank of America Merrill Lynch, BNP Paribas, Citigroup and Toronto Dominion Securities.

This 7-year USD benchmark carries a semi-annual coupon of 1.625% and matures on February 10, 2022.  It offers investors a yield of 1.742%, which is equivalent to a spread of 10.9 basis points over the 1.500% U.S. Treasury note due January 31, 2022.

“We are extremely pleased with the success of this transaction.  Once again, it shows the confidence investors have in the World Bank and the strong support for the World Bank’s goals – these sustainable development bonds finance projects to achieve positive social and environmental impacts across a range sectors.  Despite the low interest environment we had strong orders far exceeding our target volume for this transaction.  We are grateful for the strong support from our investors and our dealers, giving us not only our own largest 7-year transaction, but also the largest among our peers”, said Doris Herrera-Pol, Director and Global Head of Capital Markets at the World Bank.

Investor Distribution of the USD 4 billion 7-year Global Bond:
By GeographyBy Investor Type



Banks / Bank Treasuries / Corporates




Central Banks / Official Institutions




Asset Managers / Pension / Insurance


Middle East and Africa



Transaction Summary:

Issuer: World Bank (International Bank for Reconstruction and Development, IBRD)
Issuer rating: Aaa/AAA
Tranche: 7-year
Amount: USD 4 billion
Settlement date: February 12, 2015
Coupon: 1.625%
Coupon payment dates: Paid semi-annually on February 10, and August 10 of each year, with a short first coupon paid on August 10, 2015
Maturity date: February 10, 2022
Issue price: 99.233%
Issue yield: 1.742%
Listing: Luxembourg Stock Exchange
Clearing systems: Fedwire, Euroclear, Clearstreama
ISIN: US459058DY63
Joint lead managers: Bank of America Merrill Lynch, BNP Paribas, Citi, TD Securities
Senior Co-lead managers: BMO Capital Markets, Deutsche Bank, HSBC, Nomura
Co-lead managers: Barclays, Castle Oak, Credit Suisse, Daiwa, DZ Bank, FTN, Goldman Sachs, Jefferies, JP Morgan, Morgan Stanley, RBC, SEB, Wells Fargo

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 investor’s 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:

“An emphatic return to the market from the World Bank for their first benchmark of 2015, showing leadership in the 7yr part of the curve which has been undersupplied year to date. Indeed, this was the first USD 7yr benchmark of the year in the SSA space.  The breadth and quality of investors across Central Banks, Treasuries and Fund Managers was impressive, particularly given the very tight spread to US treasuries at pricing”, said Adrien de Naurois, SSA Syndicate at Bank of America Merrill Lynch.

“The World Bank’s last benchmark outing was the largest ever 10-year supranational USD global and they have followed up with the largest ever 7-year SSA USD global. The superlatives have almost become the norm with regard to World Bank benchmark issuance. There are many impressive aspects of the transaction but the broad investor distribution at such a tight spread to US Treasuries illustrates the prominent standing that the World Bank holds in the international capital markets”, said Jamie Stirling, Head of SSA DCM at BNP Paribas.

“World Bank dollar benchmarks are a special event for rates investors. With their first benchmark transaction for 2015, IBRD has attracted a 25% over-subscription for the largest ever SSA 7-year bond. It’s another great success for the World Bank Treasury funding team”, said Philip Brown, Head of SSA DCM at Citigroup.

“The World Bank seem to have a knack for picking the optimal trade, timing and tenor to fulfil investor demand and this trade was no exception. This is the first 7 year transaction of 2015 and The World Bank were quick to take advantage of the lack of supply and were rewarded with a very impressive USD4bn print.  This will be the perfect 7 year reference point for the SSA space in the near future”, saidLaura Quinn, Director of Fixed Income 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 and the original member of the World Bank Group. 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 World Bank Group has two main goals: to end extreme poverty and promote shared prosperity. The World Bank (IBRD) seeks to achieve them primarily by providing loans, risk management products, and expertise on development-related disciplines to its borrowing member government clients in middle-income countries and other creditworthy countries, and by coordinating responses to regional and global challenges. The World Bank has been issuing sustainable development bonds in the international capital markets for over 60 years to fund its activities that achieve a positive impact. Information on bonds for investors is available on the World Bank Treasury website: (www.worldbank.org/debtsecurities).