Washington, DC, January 18, 2017 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced a USD 5 billion 5-year global benchmark that matures on January 26, 2022. There were orders in excess of USD 7.3 billion from 137 investors in the order book that was anchored by central banks and official institutions from 22 countries. Other investors included banks treasuries, corporates, asset managers, as well as pension and insurance funds.
Joint lead managers for this global bond are Barclays, BMO Capital Markets, J.P. Morgan, and TD Securities.
The 5-year benchmark has a semi-annual coupon of 2% per annum and a maturity date of January 26, 2022. It offers investors a yield of 2.115%, equivalent to 25.45 basis points over the 2% UST due December 31, 2021.
"We appreciate the excellent reception for our first USD global benchmark bond this year and believe that continued investor support for high quality liquid World Bank bonds and the collaborative efforts of our financial partners is the reason for the success of this transaction,” said Arunma Oteh, Vice President and Treasurer, World Bank.
By Investor Type
Central Banks / Official Institutions
Asset Managers/Insurance/Pension Funds
Middle East and Africa
World Bank (International Bank for Reconstruction and Development, IBRD)
USD 5 billion
January 26, 2017
2.000% per annum
Coupon payment dates:
Paid semi-annually on January 26 and July 26 of each year
January 26, 2022
Luxembourg Stock Exchange
Fedwire, Clearstream, Euroclear,
Joint lead managers:
Barclays, BMO, J.P. Morgan, and TD
Senior co-lead managers:
Castle Oak, Wells Fargo, Morgan Stanley
BNP Paribas, BoAML, Citi, Credit Agricole, Goldman Sachs, FTN, HSBC, InCapital, Nomura, Mitsubishi, Deutsche Bank, RBC, Tokai Tokyo and Mizuho Securities
Joint Lead Manager Quotes
"This is a fantastic deal to open the USD benchmark funding programme for World Bank in 2017, executed with great precision and amidst a busy primary market. The World Bank again stood stand out from the pack with impressively strong demand, as highlighted by the USD 7 billion order book and underlining again the exceptional status that World Bank credit holds within the global investor base,” said Lee Cumbes, Managing Director, Head of Public Sector EMEA, Barclays.
"Investors may be tired from keeping up with the flood of January SSA supply, but if there are any concerns over new issue fatigue, just ask the World Bank. Over USD 7 billion in demand from more than 130 investors while launching the tightest 5-year deal of the new year. It was all excitement today from the global investor universe – an incredible result,” said Sean Hayes, Director, SSA Origination & Syndicate, BMO Capital Markets.
"World Bank has attracted the master list of the 5-year supranational investor base with its transaction today, whilst also achieving the joint largest USD transaction of the year and at the tightest spread for a 5-year. It has timed its first transaction of 2017 perfectly – fantastic result,” said John Lee-Tin, Managing Director, Head of SSA DCM, JP Morgan.
"The first USD benchmark from the World Bank in 2017 is a capital market triumph. Despite the very busy new issue market, the World Bank managed to get a jumbo transaction and optimal pricing. The final pricing of MS+20bps is the tightest print in the tenor from the SSA community so far this and is a reflection of the unique appeal of the World Bank with global investors,” said Salvo Aloisi, Managing Director, 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. 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. 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.