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PRESS RELEASE June 6, 2019

World Bank Launches First-Ever Dual Tranche SSA Sterling Benchmark Transaction

World Bank Launches First-Ever Dual Tranche SSA Sterling Benchmark Transaction

Washington, DC, June 6, 2019The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced the first-ever GBP dual tranche transaction in the SSA space. The new GBP 500 million SONIA-linked FRN maturing in December 2022 represents the tightest-ever spread achieved in a SONIA-linked format. This dual tranche transaction which includes World Bank’s third SONIA-linked issuance, not only demonstrates World Bank’s commitment to the sterling market but also its commitment to support developing a market for LIBOR alternatives.

The transaction attracted a high-quality order book. The combined order book consisted of a total of 45 orders:  balanced between the tranches of this transaction. The order book was dominated by UK accounts with additional orders coming from global investors.

George Richardson, Director of Capital Markets, World Bank, said, “We are very thankful for the strong reception from the Sterling market to our dual tranche, GBP 1 billion transaction today.  As we continue to work toward our important development mandate, we are encouraged by the degree of ongoing support of pound sterling investors and are deeply grateful to enjoy the long-lasting partnerships in the UK which help make these deals a success.”

Investor Distribution – by Geography

World Bank GBP 500 million SONIA-Linked Global Floating Rate Note due 13 December 2022

World Bank GBP 500 million 0.875% Fixed Rate Global Benchmark due 13 December 2024

 

 

UK

96%

UK

65%

EU

4%

EU

20%

 

Americas

10%

Asia

5%

 

Investor Distribution – by Type

World Bank GBP 500 million SONIA-Linked Global Floating Rate Note due 13 December 2022

World Bank GBP 500 million 0.875% Fixed Rate Global Benchmark due 13 December 2024

Banks

91%

Banks

55%

Asset Managers

9%

CB/OI

27%

 

 

Insurance / Pension

10%

 

 

Asset Managers

8%

Summary of Terms - World Bank GBP 500 million SONIA-Linked Global Floating Rate Note due 13 December 2022

Issuer

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

Issuer rating

Aaa/AAA

Amount

GBP 500 million

Settlement date

13 June 2019

Maturity date

13 December 2022

Floating Rate Reference

Compounded Daily SONIA, as defined in the final terms

Coupon

Compounded Daily SONIA+22bps, 5-day observation lag

Coupon payment dates

Quarterly, every 13 March, 13 June, 13 September and 13 December up to and including the Maturity Date, beginning with the first coupon on 13 September 2019

Interest basis

Act/365 (fixed)

Business days

London, New York

Re-offer price

100%

Listing                

Luxembourg Stock Exchange

Clearing systems

Euroclear/ Clearstream

ISIN

XS2010678808

Joint lead Managers

Citi, J.P. Morgan, NatWest Markets

 

Summary of Terms – World Bank GBP 500 million 0.875% Fixed Rate Global Benchmark due 13 December 2024

Issuer

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

Issuer rating

Aaa/AAA

Amount

GBP 500 million

Settlement date

13 June 2019

Maturity date

13 December 2024

Coupon

0.875% per annum

Coupon payment dates

Annually in arrear, commencing on 13 December 2019 (short first coupon) up to and including the maturity date

Re-offer Spread vs. benchmark

UKT 2.75% September 2024 +39bps

Re-offer yield

0.990% annual / 0.988 % s.a.

Re-offer price

99.386%

Interest basis

Act/Act ICMA Unadjusted, Following Business Day Convention

Business days

London, New York

Listing                

Luxembourg Stock Exchange

Clearing systems

Euroclear/ Clearstream

ISIN

XS2011142416

Joint lead Managers

Citi, J.P. Morgan, NatWest Markets

“Once again World Bank has been at the vanguard of the SSA market, executing today a GBP 1 billion dual-tranche transaction. The 3-year SONIA FRN and 5-year fixed rate tranches complemented each other perfectly. The latter was added on the day of pricing in response to specific demand. Final interest was evenly split between the two allowing them to print GBP 500 million apiece. Citi was delighted to be involved in this landmark transaction," said Alex Barnes, Head of SSA Syndicate, Citi

 

“When the World Bank comes to the markets, one has to be ready to see financial market history in the making. Today was no exception. With the first dual tranche and dual format deal in the GBP SSA market, World Bank was able to react quickly to investor demand across two tenors and two formats allowing a typical sizeable World Bank trade whilst maximising investor reach and optimising funding cost. Congratulations to the World Bank,” Matthieu Batard, Head of SSA Syndicate, J.P. Morgan

 

“The World Bank once again confirms its status as a market pioneer printing a total of GBP 1 billion across a dual tranche issue; itself an innovation in the SSA sterling market. The willingness to accommodate diverse investor interest confirms and explains the high regard with which the World Bank team are held in across the globe. We were delighted to be involved in this dual-tranche transaction for the World Bank,” Kerr Finlayson, Head of FBG Syndicate, NatWest Markets

 

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.

* This press release is not an offer for sale of bonds of the International Bank for Reconstruction and Development ("IBRD"), also known in the capital markets as "World Bank". Any offering of the bonds will be made only by means of a prospectus containing detailed information that will made available through the joint lead managers, senior co-lead managers and co-lead managers, and is subject to restrictions under the laws of several countries. Securities may not be offered or sold except in compliance with all such laws.

Contact

Heike Reichelt

Head of Investor Relations and New Products

The World Bank

+1 202 477 2880

debtsecurities@worldbank.org




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