Washington, DC, August 1, 2018—The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced a 16-year Euro denominated global bond. This is the World Bank’s first global Euro benchmark bond since October 2016.
The EUR 750 million bond offers a coupon of 1.20% p.a. The maturity date is August 8, 2034, and the issue price is 99.711%. The yield is 1.22%, which is equivalent to 47.3 basis points over the 4.75% German Bund due July 4, 2034. Joint lead managers for this bond are Credit Agricole CIB, Deutsche Bank and Natixis.
Order books closed at 11:30 am London time, with a total of over EUR 850 million in orders from 24 institutional investors across Europe. The transaction was purchased by asset managers (59%), life insurance companies and pension funds (32%), and bank treasuries and other investors (9%).
Transaction Summary |
|
Issuer | World Bank (International Bank for Reconstruction and Development, IBRD) |
Issuer rating | Aaa / AAA |
Maturity | 16-year |
Amount : | EUR 750 million |
Settlement date | August 8, 2018 |
Coupon | 1.20% |
Coupon payment dates | Payable annually on August 8th each year |
Maturity date | August 8, 2034 |
Issue price | 99.711% |
Issue yield | 1.22% |
Listing | Luxembourg Stock Exchange |
Clearing systems | Euroclear and Clearstream |
ISIN | XS1864034365 |
Joint lead managers | Credit Agricole CIB, Deutsche Bank, Natixis |
Nothing in this press release should be construed as a solicitation or offer, legal, tax or other advice, or recommendation to engage in any transaction in any jurisdiction. Any offer of any Notes will solely take place on the basis of the Prospectus, the relevant Final Terms and any related legal documentation. The proceeds of the Notes will be used by the World Bank to finance sustainable development projects and programs in the World Bank’s member countries without being committed or earmarked for lending to, or financing of, any particular projects or programs.
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 is the original member of the World Bank Group and operates as a global development cooperative owned by 189 nations.
The World Bank provides loans, guarantees, risk management products, and advisory services to middle-income and other creditworthy countries to support the Sustainable Development Goals and to end extreme poverty and promote shared prosperity. It also provides leadership to coordinate regional and global responses to development challenges.
The World Bank has been issuing sustainable development bonds in the international capital markets for over 70 years to fund programs and activities that achieve a positive impact. More information on World Bank bonds is available at www.worldbank.org/debtsecurities.
