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PRESS RELEASE January 7, 2016

World Bank Prices a New GBP 650 Million 5-Year Global Benchmark Bond

Washington DC, January 7, 2016 -The World Bank (IBRD, Aaa/AAA) today priced a GBP 650 million 5-year global bond. This deal is the largest new 5-year GBP benchmark in 3 years for the sovereign, supranational, and agency (SSA) sector.

Following the successful tap of its outstanding October 2017 Notes in late 2015, this deal represents the World Bank’s first new GBP global since its GBP 250 million transaction in February 2014, providing an extension and new liquid benchmark on the World Bank’s GBP curve. This deal also represents the second largest GBP bond issued by the World Bank.

The final order book was in excess of GBP 730 million with close to 30 orders anchored with UK investors. The joint-lead managers for this global bond are Barclays, HSBC and RBS.

The GBP benchmark has an annual coupon of 1.375% and matures on December 15, 2020. It offers investors a yield of 1.463% (s.a.), which is equivalent to a spread of 35 basis points over the 3.750% UK Gilt due September 2020.

"This is an excellent outcome for the World Bank and we are delighted with the strong reception for our first Sterling benchmark transaction of the year. This bond provides investors the rare opportunity to be part of a new, liquid World Bank global bond in Sterling. We appreciate the continued support from investors for the World Bank and our development mandate,” said Arunma Oteh, Vice President and Treasurer, World Bank.

Investor Distribution

Distribution by Geography

Distribution by Investor Type



Banks / Corporates




Central Banks/Official Institutions




Insurance/Pension Funds




Asset Managers


Middle East and Africa



Transaction Summary


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

Issuer rating:





GBP 650* million

Settlement date:

January 14, 2016



Coupon payment dates:

Paid annually on December 15 of each year

Maturity date:

December 15, 2020

Issue price:


Issue yield:

1.463% (s.a.)


Luxembourg Stock Exchangew

Clearing systems:

Euroclear, Clearstream



Joint lead managers:

Barclays, HSBC, RBS

* On February 19, 2016, the transaction was revised due to an increase (GBP 200 million). On December 7, 2016, IBRD agreed to increase the principal amount with a third tranche in the amount of GBP 175 million with an issue price of 102.655% (settlement date: December 16, 2016). The new total outstanding principal amount is GBP 1.025 billion.

Joint lead manager quotes:

"Through this new 5-year GBP benchmark, the World Bank has successfully extended their own benchmark curve and provided investors with their desired 5-year liquid reference as highlighted by the oversubscribed and high quality order book.  This deal is another excellent result for the World Bank,” said Susan Barron, Managing Director, SSAR Origination at Barclays.

"A very strong return to the Sterling primary market for World Bank, with their first new line for almost 2 years. The issuer took advantage of strong liquidity in the Sterling market to extend their curve, and were rewarded by broad-based support from high quality investors from around the globe," said Asif Sherani, SSA Syndicate at HSBC.

"Following a successful short-end tap done towards the end of last year, World Bank had been monitoring the Sterling market for some time. By being able to act quickly to take advantage of the positive momentum we had witnessed over the last few days, World Bank was able to achieve an amazing issue size for a non-European issuer. This is an excellent result highlighting World Bank’s unique credit quality with the universe of Sterling buyers,” said Damien Carde, Managing Director, Head of Frequent Borrower Group DCM at RBS.

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 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 and achieve a positive impact. Information on bonds for investors is available on the World Bank Treasury website: www.worldbank.org/debtsecurities.