Washington DC, December 7, 2016 – The World Bank (IBRD, Aaa/AAA) today priced a GBP 175 million tap of their outstanding December 2020 global bond. This deal represents the second tap of this line since the inaugural deal was priced in January of this year and represents the first GBP Sovereign Supra and Agency to price in December 2016.
Following a flurry of successful new GBP lines issued this year (December 2020, June 2021, and December 2023), World Bank returned to the market to bring their first GBP issue of the year to a total outstanding amount of GBP 1.025 billion.
The final order book was in excess of GBP 210 million anchored by UK investors. The joint-lead managers for this tap are Citi, Deutsche Bank, and Royal Bank of Scotland.
The new tranche has a re-offer price of 102.655% to give a spread of 30 bps over the 3.75% September 2020 UKT equivalent to a yield of 0.698% s/a.
Investor Distribution | |||
By Geography: | By Investor Type: | ||
UK | 65% | Asset Manager | 52% |
Middle East & Africa | 29% | Central Banks/Official Institutions | 29% |
Europe | 6% | Banks/Corporates | 19% |
Transaction Summary | |
Issuer: | World Bank (International Bank for Reconstruction and Development, IBRD) |
Issuer rating: | Aaa /AAA |
Maturity date: | 15 December 2020 |
Tap amount: | GBP 175 million |
New outstanding size: | GBP 1.025 billion |
Settlement date: | 16 December 2016 |
Coupon: | 1.375% p.a. |
Issue Price: | 102.655% |
Issue yield: | 0.698% (s.a) |
Listing: | Luxembourg Stock Exchange |
Clearing systems: | Euroclear, Clearstream |
ISIN: | XS1344519399 |
Joint lead managers: | Citi, Deutsche Bank, Royal Bank of Scotland |
The present transaction is consistent with World Bank’s longstanding practice issuing in the international capital markets to offer investors 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. The demand World Bank managed to attract in what remains challenging conditions reiterates the highest quality reputation and trust World Bank as an issuer has in the market.
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 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
