Washington, DC, September 6, 2016 – The World Bank (IBRD, Aaa/AAA) today priced a GBP 650 million 5- year global bond. This is the first new GBP benchmark issued by a sovereign, supranational or agency (SSA) issuer since late June.
Following the World Bank’s successful December 2020 new sterling issue in January of this year, this new 5-year provides an extension and new liquid benchmark on the World Bank’s GBP curve.
The final order book reached more than GBP 800 million with over 30 orders anchored by UK investors. The joint-lead managers for this bond are Citi, RBC Capital Markets and RBS.
The GBP benchmark has an annual coupon of 0.375% and matures on June 15, 2021. It offers investors a yield of 0.428% (semi-annual), which is equivalent to a spread of 22 basis points over the 1.5% UK Gilt due January 2021.
Investor Distribution | |||
By Geography | By Investor Type | ||
UK | 83% | Asset Managers | 52% |
Europe | 11% | Bank Treasuries | 33% |
USA | 4% | Central Banks / Official Institutions | 9% |
Asia | 2% | Other | 6% |
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.
