Washington, D.C., January 8, 2020 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced a new USD 3.5 billion 5-year global benchmark bond that matures on January 15, 2025.
The transaction was announced at US market open on Tuesday, January 7, with formal book building commencing the following day. Strong global investor demand led to an orderbook that reached USD 4.8 billion, with over 110 orders from investors around the world participating in the transaction.
The 5-year benchmark was priced with a final spread of 7.57 basis points over the 1.75% UST due December 31, 2024 reference bond, offering investors a yield of 1.723% (semi-annual). BMO Capital Markets, Citi, J.P. Morgan and TD Securities are the joint lead managers for the transaction.
“We are very pleased with the result of this first USD global benchmark bond in 2020. The offering was welcomed by a diverse group of investors across the globe, and demonstrates the value placed on the World Bank's sustainable development mission - to end extreme poverty and promote shared prosperity in our member countries”, said Jingdong Hua, Vice President and Treasurer, World Bank.
By Investor Type
Europe & Middle East
Central Banks/Official Institutions
Asset Managers/Insurance/Pension Funds
Joint Lead Manager Quotes
“In a volatile, headline-driven market, the World Bank credit quality shines with this record-breaking achievement. Over 100 participating investors paved the way to the tightest ever 5-year bond versus US Treasuries that the USD primary market for supranationals and agencies has ever seen”, said Sean Hayes, Managing Director and Head of US Syndicate at BMO Capital Markets.
“An outstanding trade from the World Bank to kick off its 2020 USD funding, achieving the tightest spread to US Treasuries for a 5-year USD supranational transaction and beating its own previous record set in August last year. The diversification and quality of the orderbook is a testament to the continued support of global investor community for the World Bank name. Citi was delighted to be involved", said Philip Brown, Head of Public Sector Debt Capital Markets at Citi.
“The World Bank breaks records again with the tightest-ever 5-year USD global benchmark transaction in terms of Treasury spread – final pricing of 7.57 bps over the US Treasury, being the tightest spread achieved by a supranational or agency issuer to date. This demonstrates the continued global appeal of the World Bank name even amidst a challenging macro backdrop and high volatility. Well done to the World Bank team once again!” said Keith Price, Head of Frequent Borrower Group at J.P. Morgan.
“The World Bank has proven its exceptional standing in global capital markets, attracting the highest quality demand in a market environment characterized by increased volatility and uncertainty from geopolitical headlines. The track record of the World Bank in the USD market enabled them to price their first USD global benchmark offering of 2020 at the tight end of the range. This transaction marks a great start into the new year for the World Bank as well as for the broader USD sovereign, supranational and agency (SSA) market sentiment”, said Paul Eustace, Managing Director, Head of EMEA Syndicate at TD Securities.
World Bank (International Bank for Reconstruction and Development, IBRD)
USD 3.5 billion
January 15, 2020
January 15, 2025
Luxembourg Stock Exchange
BMO, Citi, J.P.Morgan, TD Securities
Deutsche Bank, FHN, Incapital, Wells Fargo
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. 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.
Heike Reichelt, The World Bank
+1 202 477 2880