Washington, DC, August 10, 2016 – The World Bank (International Bank for Reconstruction and Development, IBRD, rated Aaa/AAA) has raised USD 397,314,000 million through its Notes due August 11, 2026. The Notes offer investors a fixed rate coupon for the first year and floating rate coupons thereafter. The trade launched in early July and priced on August 5, 2016.
This 10-year USD Note has a one-year fixed coupon of 1.82% per annum, and thereafter a floating annual coupon of USD Libor 3-months flat, capped at 1.82% per annum and floored at 0.00%. The Notes were distributed to private banking and retail investors through Intesa Sanpaolo Group, the largest domestic network in Italy.
Banca IMI, the investment bank of the Intesa Sanpaolo Group, was the Dealer for this transaction.
“I am delighted to see such a warm reception to this transaction from investors in Italy. The interest from individuals and institutional investors in the World Bank's Sustainable Development Bonds, shows how much potential there is to channel investments towards achieving the Global Goals. It sends a powerful message to all investors, that they can do well and do good at the same time,” said Arunma Oteh, Vice President and Treasurer, World Bank.
“We’re proud to have arranged this new successful transaction for the World Bank, the second one this year. We are pleased to announce the total amount raised in 2016 through Intesa Sanpaolo retail and private banking networks for World Bank now exceeds USD 1 billion. Italian retail was given the opportunity to invest in such a high quality issuer demonstrating a strong interest for World Bank projects. This placement is a testimony of the major role of Banca IMI and the Intesa Sanpaolo Group in contributing to the growth of responsible investing and to reinforce our partnership with the World Bank,” said Pantaleo Cucinotta, Head of Debt Capital Markets, Banca IMI.
August 11, 2016
1.82% per annum for the first year
USD Libor 3 months flat, capped at 1.82% per annum and floored at 0.00% from year 2 to the maturity date
Fixed coupon payment date
August 11, 2017
Floating coupon payment dates:
August 11 of each year from and including August 11, 2018 to and including the maturity date
August 11, 2026
Luxembourg Stock Exchange
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 189 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.
About Banca IMI
Banca IMI, the investment bank of Intesa Sanpaolo Group, assists institutional investors, financial networks, businesses and public authorities offering financial products and services. Backed by over 800 professionals, Banca IMI operates in investment banking, structured finance and capital markets on the main national and international markets, through its offices in Milan, Rome, London and New York. Banca IMI is one of the top players in M&A Advisory business, equity and bond placement, Italian structured finance market, with a solid international track record. The bank provides a Corporate Broking service, financial risk management, structured and investment products for retail customers and - through its innovative proprietary market access platform Market Hub – it dynamically searches for the best execution of MiFID-compliant orders, enabling over 350 Italian and international institutional customers to access more than 70 national and international markets (equity, bond and derivatives markets).
About Intesa Sanpaolo
Intesa Sanpaolo is the Italian leader among the top groups in the euro zone, with a market capitalisation of 28.5 billion euro (30.06.2016). The Group is leader in Italy in all business areas (retail, corporate, and wealth management), offers its services to 11.1 million customers through a network of approximately 4,100 branches well distributed throughout the country with market shares no lower than 13% in most Italian regions. Intesa Sanpaolo has a selected presence in Central Eastern Europe and Middle Eastern and North African areas with approximately 1,200 branches and 8.1 million customers belonging to the Group's subsidiaries operating in commercial banking in 12 countries. Moreover, an international network of specialists in support of corporate customers spreads across 29 countries, in particular in the Middle East and North Africa and in those areas where Italian companies are most active, such as the United States, Brazil, Russia, India and China.