Washington, DC, September 23, 2015 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced a 2-year USD 1.25 billion Floating Rate Note (FRN).
The transaction is the largest USD FRN transaction of 2015 from a Sovereign, Supranational and Agency (SSA) issuer, and the largest FRN new issue priced since the World Bank’s USD 1.5 billion 2-year transaction in January 2013. The transaction had over 25 orders, including several new USD investors for the World Bank, taking advantage of this unique opportunity. The joint-lead managers for this global bond are BMO Capital Markets, Credit Suisse and Goldman Sachs International.
This 2-year USD FRN benchmark carries a coupon of 3-month USD LIBOR flat, paid quarterly, and matures on September 30, 2017.
Investor Distribution of the USD 1.25 billion 2-year USD FRN Benchmark:
By Investor Type
Banks / Bank Treasuries / Corporates
Central Banks / Official Institutions
Middle East and Africa
Asset Managers / Pension / Insurance
World Bank (International Bank for Reconstruction and Development, IBRD)
USD *1.25 billion
September 30, 2015
3-month USD LIBOR flat
Coupon payment dates:
Paid quarterly on September, December, March and June 30 of each year, commencing on December 30, 2015
September 30, 2017
Luxembourg Stock Exchange
Joint lead managers:
BMO Capital Markets, Credit Suisse Securities (Europe), Goldman Sachs International
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.
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 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 bonds in the international capital markets for over 65 years to fund its sustainable development activities and achieve a positive impact. Information on bonds for investors is available on the World Bank Treasury website:(www.worldbank.org/debtsecurities).