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PRESS RELEASE September 13, 2016

World Bank Prices Oversubscribed USD 3.5 Billion 5-Year Global Benchmark Bond

Washington, DC, 13 September 2016 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced a USD 3.5 billion 5-year global benchmark that matures on September 20, 2021. There were orders for over USD 4.3 billion from 75 investors in the order book that was anchored by central banks and official institutions from 19 countries. Other investors included banks treasuries, corporates, asset managers, as well as pension and insurance funds.

Joint lead managers for this global bond are Citi, Deutsche Bank, J.P. Morgan, and RBC Capital Markets.

The 5-year benchmark has a semi-annual coupon of 1.375% per annum and a maturity date of September 20, 2021. It offers investors a yield of 1.408%, equivalent to 20.95 basis points over the 1.125% UST due August 31, 2021.

"I am delighted with the excellent reception we received with this successful USD benchmark global transaction. We especially welcome new investors who have placed orders for World Bank bonds for the first time. The demand spanning across regions and asset classes proves that the search for high quality liquid paper is universal and we are proud to be able to meet these needs. We are very grateful for the strong support from investors and financial partners alike for our global sustainable development mandate,” said Arunma Oteh, Vice President and Treasurer, World Bank.

Investor Distribution

Investor Distribution by Geography

Investor Distribution by Type



Central Banks/Official Institutions




Banks/Bank Treasuries/Corporates




Asset Managers/Insurance/Pension Funds


Middle East and Africa




Summary of terms


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

Issuer rating:

Aaa /AAA




USD 3.5 billion

Settlement date:

September 20, 2016


1.375% per annum

Coupon payment dates:

Paid semi-annually on March 20 and September 20 of each year

Maturity date:

September 20, 2021

Issue price:


Issue yield:



Luxembourg Stock Exchange

Clearing systems:

Fedwire, Euroclear, Clearstream



Joint lead managers:

Citi, Deutsche Bank, J.P. Morgan, and RBC Capital Markets

Senior co-lead managers

BMO, CastleOak, InCapital, Nomura

Co-lead managers:

Bank of America Merrill Lynch, BNP Paribas, Barclays, HSBC, Goldman Sachs, Morgan Stanley, Credit Agricole, TD Securities, Mizuho Securities, Mitsubishi, Wells Fargo, and Mesirow Financial

Joint lead manager quotes:

“Citi was delighted to be involved in this impressive transaction from the World Bank. The heightened volatility over the past week has raised the bid for high quality, liquid issues. We saw strong and highly diversified demand which enabled the World Bank to price a new benchmark at an attractive level to swaps and Treasuries,” said Philip Brown, Managing Director, Head of Public Sector DCM.

"We congratulate the World Bank on yet another successful benchmark, taking advantage of stable market conditions prior to the September FOMC week. The superior quality and granularity of the book are a testament to the ongoing support IBRD enjoys from a wide range of investors globally, particularly as there was competing supply in the market and holidays in certain regions. Indeed a very impressive outcome!" said Steven Jallport, Head of SSA Origination, Deutsche Bank.

“With this transaction, World Bank has once again demonstrated its status as leading issuer with its first USD global benchmark after the summer break. It is testament to the high regard in which World Bank is held by its global investor base that it was able to amass such a high quality and diverse order book, all whilst pricing an upsized transaction, at its tightest spread for a 5-year maturity so far this year and with a minimal concession versus its curve,” said Keith Price, Managing Director and Head of SSA J.P. Morgan.

“The World Bank has yet again successfully navigated an uncertain market and the narrowest of windows (between Fedspeak, competing supply, Treasury auctions and holidays around the world) to demonstrate unmatched access to the global investor base. The quality of the demand despite paying a very tight headline spread versus the Treasury benchmark and effectively no new issue concession says it all,” said Jigme Shingsar, Managing Director, Debt Capital Markets, RBC Capital Markets.

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 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 has two main goals: to end extreme poverty and promote shared prosperity. It 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. It has been issuing sustainable development bonds in the international capital markets for over 60 years to fund its activities that achieve a positive impact. Information on World Bank bonds for investors is available on the World Bank Treasury website: www.worldbank.org/debtsecurities.