Washington, DC, October 2nd, 2019 – The World Bank (IBRD, Aaa/AAA) today priced a 30-year EUR 500 million fixed rate note. This is the World Bank’s longest EUR global benchmark ever issued.
BNP Paribas, Deutsche Bank and Goldman Sachs International are the lead managers for the transaction.
The EUR 500 million global bond attracted orders from nearly 30 investors from Europe and Asia. It was priced with a final spread of +38.10 basis points over the EUR 1.25% August 2048 reference Bund and offers a yield of 0.318%.
“We are very pleased with the transaction. We tested a very long benchmark maturity for the first time. This is in line with our strategy to extend the average duration of our funding this year. It is gratifying to see several new investors participating in this transaction and supporting the World Bank’s sustainable development mandate,” said Andrea Dore, Head of Funding, World Bank Treasury.
Investor Distribution
By Geography | By Investor Type | ||
Europe | 96% | Asset Managers/Insurance/Pension Funds | 90% |
Asia | 4% | Central Banks/Official Institutions | 6% |
|
| Banks/Bank Treasuries/Corporates | 4% |
“The World Bank successfully extended their EUR curve by launching the longest ever benchmark by a non-European supra in the EUR markets. Given the World Bank’s desire to increase the duration of their funding, this transaction fulfils that objective whilst accessing a new sector of investor liquidity. Achieving the EUR 500 million final deal size, it was impressive to see the number and quality of investors in the book,” said James Stirling, Global Head SSA DCM, BNP Paribas.Joint Lead Manager Quotes
“With the extension to 30-years, this transaction has set another important milestone for the development of the World Bank’s EUR curve and continues the issuer’s successful strategy of diversifying its funding into new territories. The order book was of very high quality and attracted a diverse range of real money investors from Europe and beyond. We congratulate the World Bank on this excellent result,” said Katrin Wehle, Director SSA Origination, Deutsche Bank.
“We were delighted to be involved in the inaugural 30-year EUR transaction for the World Bank. The back-up in yields over the past week provided an attractive backdrop for investors, and the book was of exceptional quality. This transaction establishes an important point on the issuer's EUR curve, and it is a testament to the pristine credit and track record of the World Bank that fixed income accounts were ready to participate in this 30-year bond at a yield of just over 30 bps,” said Lars Humble, Managing Director Head of SSA Syndicate, Goldman Sachs.
Transaction Summary
World Bank (International Bank for Reconstruction and Development, IBRD) | |
Issuer rating: | Aaa/AAA |
Amount: | EUR 500 million |
Settlement date: | October 10, 2019 |
Maturity date: | January 10, 2050 |
Issue price: | 98.042% |
Coupon: | 0.25% p.a. |
Denomination: | EUR 1,000 |
Listing: | Luxembourg Stock Exchange |
Lead managers: | BNP Paribas, Deutsche Bank and Goldman Sachs International |
ISIN: | XS2063423318 |
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 bonds 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 bonds 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
debtsecurities@worldbank.org
