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PRESS RELEASE January 21, 2016

World Bank Prices a New USD 4.5 Billion Long 3-Year Global Benchmark Bond

Washington, DC, January 21, 2016 – The World Bank (IBRD, Aaa/AAA) today priced a USD 4.5 billion 3-year global benchmark that matures on July 26, 2019. In an environment of significant market volatility across asset classes, the World Bank responded to increased demand for high quality, liquid assets by announcing a long 3-year benchmark. The transaction was extremely well-received by the market, garnering interest from top investors across the globe.

There were over 90 orders in the oversubscribed USD 5.1 billion order book, anchored by central banks and official institutions from 31 countries. Other investors included banks, corporates, asset managers, pension and insurance funds.  This transaction is the World Bank’s first USD benchmark since September 2015 and adds a new liquid reference point to the front end of the World Bank’s curve.

Joint lead managers for this global bond are Barclays, J.P. Morgan, Nomura and TD Securities.

The long 3-year benchmark has a semi-annual coupon of 1.250% and a maturity date of July 26, 2019.  It offers investors a yield of 1.392% (semi-annual), equivalent to 34.7 basis points over the 1.125% UST due January 2019.

"This is the World Bank's first benchmark in the US dollar global markets since September last year, and its success helps us begin the New Year on a very high note.  The offering was met with a warm reception by a broad range of investors across the globe, and demonstrates the value placed on the World Bank's solid credit and liquidity, especially during times of continued market volatility and uncertainty. We are very grateful for the strong support from our investors and financial partners for our global sustainable development mandate," said Arunma Oteh, Vice President and Treasurer, World Bank

Investor Distribution of the USD 4.5 billion 3-year Global Benchmark Bond:
By GeographyBy Investor Type



Central Banks / Official Institutions




Banks / Corporates




Asset Managers / Insurance / Pension Funds


Middle East and Africa




Transaction Summary


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

Issuer rating:

Aaa /AAA




USD 4.5 billion

Settlement date:

January 28, 2016



Coupon payment dates:

Paid semi-annually on 26 January and 26 July of each year

Maturity date:

July 26, 2019

Issue price:


Issue yield:

1.392% (s.a)


Luxembourg Stock Exchange

Clearing systems:

Fedwire, Euroclear, Clearstream



Joint lead managers:

Barclays, J.P. Morgan, Nomura, TD Securities

Joint lead manager quotes:

“This is another landmark transaction for the World Bank and a strong start for them in the US$ benchmark markets in 2016.  Once again, the issuer has been able to tailor their issuance strategy to best meet short end investor demand whilst navigating unchartered territory with swap spreads and yields close to the lows.  The strength, size and diverseness of the order book as well as the new issue pricing are clearly testament to the World Bank’s success and its status as a first in class borrower,” said Susan Barron, Managing Director, SSAR Origination, Barclays.

“A barnstormer of a trade underlining the strength of the IBRD name with the correct maturity in a time of high volatility.  The strength and quality of the orderbook confirms the flight to quality benchmark status that the World Bank carries," saidKeith Price, Managing Director, Head of Frequent Borrowers and FIG Syndication, J.P. Morgan.

“Another great trade for the World Bank, clearly demonstrating the issuer’s global appeal and confirming its reputation for offering liquidity and security irrespective of the market back drop.  The granularity and diversity of the orderbook is second to none and to achieve a print of $ 4.5bn given the continued volatility in underlying markets is truly impressive,” said Spencer Dove, Managing Director, DCM Public Sector, Nomura.

“Given the very volatile and weak market backdrop this transaction is exactly what the market needed. The World Bank benefits from its flight to quality status and the 3-year tenor did find the largest possible demand.  Even more impressive is the fact that the World Bank managed to get size out of the market with a very limited new issue concession, something no other SSA issuer has achieved so far in 2016,” said Salvatore Aloisi, Managing Director, Head of Origination and Syndication Europe, TD Securities.

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 60 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.