Washington, D.C., September 12, 2019— The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced its second offering in the Canadian dollar market for the fiscal year 2020*. The offering consists of two tranches: a 5-year CAD 300 million increase of the outstanding 2024 CAD 1.5 billion global benchmark launched in July 2019, bringing the total size to CAD 1.8 billion, and a new 10-year CAD 250 million bond.
BMO Capital Markets, CIBC Capital Markets, and RBC Capital Markets were joint lead managers for this transaction. The bonds will be listed on the Luxembourg Stock Exchange.
The CAD 550 million offering enjoyed a broad investor distribution across 28 investors, with 7 unique accounts participating in both tranches. Both tranches represent Sustainable Development Bonds that support the World Bank’s sustainable development lending. The 2024 bond is part of the World Bank initiative to engage investors and raise awareness on the Sustainable Development Goals 6, Clean Water and Sanitation, and 14, Life Below Water.
*The World Bank’s fiscal year begins on July 1.
Transaction Summary - World Bank CAD 300 million tap of the Global Fixed Rate Note due 26 July 2024
Issuer: | International Bank for Reconstruction and Development, IBRD |
Issuer rating: | Aaa /AAA (Moody's / S&P) |
Maturity | 5-year |
Amount: | CAD 300 million (bringing outstanding to CAD 1.8 billion) |
Settlement date: | 20 September 2019 |
Coupon: | 1.800% per annum |
Coupon payment dates: | Payable semi-annually on 26 January and 26 July of each year, beginning on 26 January 2020 |
Maturity date: | 26 July 2024 |
Reference Benchmark: | CAN 1.500% due September 1, 2024 |
Issue price: | 99.999% of the Amount of this tranche plus 56 days' accrued interest |
Issue yield: | 1.800% semi-annually, Actual/Actual (Canadian Compound Method) |
Denomination: | CAD 1,000 x CAD 1,000 |
Final redemption at maturity | Par |
Spread to Benchmark: | CAN 1½ 09/01/24 + 34 bps |
Listing: | Luxembourg Stock Exchange |
ISIN: | CA459058HA44 |
Clearing system: | CDS, Clearstream, Euroclear |
Joint lead managers: | BMO Capital Markets, CIBC Capital Markets, RBC Capital Markets, |
Investor Distribution by Investor Type | Investor Distribution by Region | ||
Banks/Bank Treasuries/Corporates | 65% | Canada | 59% |
Asset Managers/Insurance/Pension Funds | 22% | Europe | 22% |
Central Banks/Official Institutions | 13% | Americas | 12% |
| Asia | 7% | |
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Transaction Summary - World Bank CAD 250 million Global Fixed Rate Note due 20 September 2029
Issuer: | International Bank for Reconstruction and Development, IBRD |
Issuer rating: | Aaa /AAA (Moody's / S&P) |
Maturity | 10-year |
Amount: | CAD 250 million |
Settlement date: | 20 September 2019 |
Coupon: | 1.950% per annum |
Coupon payment dates: | Payable semi-annually on 20 March and 20 September of each year, beginning on 20 March 2020 |
Maturity date: | 20 September 2029 |
Reference Benchmark: | CAN 2.250% due June 1, 2029 |
Issue price: | 99.855% |
Issue yield: | 1.966% semi-annually, Actual/Actual (Canadian Compound Method) |
Denomination: | CAD 1,000 x CAD 1,000 |
Final redemption at maturity | Par |
Spread to Benchmark: | CAN 2.250% 06/01/29 + 52.3 bps |
Listing: | Luxembourg Stock Exchange |
ISIN: | CA459058HF31 |
Clearing system: | CDS, Clearstream, Euroclear |
Joint lead managers: | BMO Capital Markets, CIBC Capital Markets, RBC Capital Markets |
Investor Distribution by Investor Type | Investor Distribution by Region | ||
Asset Managers/Insurance/Pension Funds | 60% | Canada | 40% |
Central Banks/Official Institutions | 38% | Europe | 30% |
Banks/Bank Treasuries/Corporates | 2% | Asia | 17% |
| Americas | 13% | |
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Net proceeds of the bonds described herein are not committed or earmarked for lending to, or financing of, any particular projects or programs, and returns on the bonds described herein are not linked to the performance of any particular project or program.
This press release is not an offer for sale of securities of the International Bank for Reconstruction and Development ("IBRD"), also known in the capital markets as "World Bank". Any offering of World Bank securities will take place solely on the basis of the relevant offering documentation including, but not limited to, the prospectus, term sheet and/or final terms, as applicable, prepared by the World Bank or on behalf of the World Bank, and is subject to restrictions under the laws of several countries. World Bank securities may not be offered or sold except in compliance with all such laws.
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 70 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.
Contact
Heike Reichelt
Head of Investor Relations and New Products
The World Bank
+1 202 477 2880
