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PRESS RELEASE June 16, 2015

World Bank Responds to Investor Demand for Safety and Stability with a New USD Global Bond

Washington, DC, June 16, 2015 – The World Bank (IBRD, Aaa/AAA) priced a USD 3.5 billion long 2-year transaction, responding to demand for safe haven, cash alternative assets amidst global market uncertainty. In the context of significant market volatility, the oversubscribed, high-quality orderbook was characterized by extremely strong central bank and official institution demand. There were over 70 orders from investors across the globe taking part in the transaction. The long 2-year represents the sixth and final World Bank USD benchmark transaction of its 2014-2015 fiscal year and refreshes the short-end of the World Bank curve with a new liquid reference point in advance of the new fiscal year. The joint-lead managers for this global bond are BNP Paribas, Citigroup, Goldman Sachs and JP Morgan.

The long 2-year USD benchmark carries a semi-annual coupon of 1.000% and matures on November 15, 2017. It offers investors a yield of 1.004%, which is equivalent to a spread of 32.25 basis points over the 0.625% U.S. Treasury note due May 2017, and 10 basis points below mid-swaps, again achieving the tightest mid-swap spread seen in a supranational issuer this year.

“Although we are nearing the end of our fiscal year, we decided to proceed with this transaction to take advantage of the favorable market conditions and appetite for our name in benchmark format. We appreciate the strong interest from investors around the world.” said Doris Herrera-Pol, Director and Global Head of Capital Markets at the World Bank.

Investor Distribution of the USD 3.5 billion 2-year USD Benchmark:

By Geography

By Investor Type



Central Banks / Official Institutions




Asset Managers / Pension / Insurance




Banks / Bank Treasuries / Corporates


Middle East and Africa




Transaction Summary:


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

Issuer rating:



Long 2-year


USD 3.5 billion

Settlement date:

June 23, 2015



Coupon payment dates:

Paid semi-annually on May 15, and November 15 of each year, with first short coupon paid on November 15, 2015

Maturity date:

November 15, 2017

Issue price:


Issue yield:



Luxembourg Stock Exchange

Clearing systems:

Fedwire, Euroclear, Clearstream



Joint lead managers:

BNP Paribas, Citigroup, Goldman Sachs, JP Morgan

Senior Co-lead managers:

BMO Capital Markets, Castle Oak, FTN, RBC Capital Markets

Co-lead managers:

Bank of America Merrill Lynch; Barclays; Credit Agricole; Credit Suisse; Daiwa; Deutsche Bank; HSBC; Morgan Stanley; Nomura; SEB; TD Securities; 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:

“The World Bank took the opportunity to satisfy increased investor demand for safe haven assets, witnessed off underlying market volatility. Upsizing from initial size expectations and matching its previous tightest USD supranational deal of the year, the World Bank’s responsive investor driven issuance policy was fully vindicated as can be seen by the quality and diversity of the orderbook” said Jamie Stirling, Global Head of SSA DCM, BNP Paribas.

"The World Bank has again demonstrated its expertise in navigating choppy market waters - responding to investor demand for safe-haven product by bringing a short dated USD benchmark. The high quality order book is testimony to the World Bank’s premier status in the SSA space," said Alex Barnes, Head of SSA Syndicate, Citi.

“We were delighted to be involved in this long 2-year USD global transaction for the World Bank. The World Bank has once again demonstrated its role as a market leader by pricing a new benchmark issue at a time when many borrowers are side-lined by the volatile market backdrop. The transaction attracted strong demand from the global central bank community, underlining the status of World Bank bonds as a safe haven asset,” said Lars Humble, Managing Director, Head of SSA Syndicate, Goldman Sachs International.

“A great deal which has been sympathetic to the broader macro-economic backdrop. Consequently we have seen broad sponsorship from the central bank community ensuring a strong USD 3.5 billion benchmark,” said Keith Price, Head of SSA Syndicate, JP Morgan.

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: (