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PRESS RELEASE January 9, 2020

World Bank Prices a Euro 3 Billion 7-year Benchmark Bond

Washington, DC, January 9, 2020 – The World Bank (IBRD, Aaa/AAA) today priced a 7-year EUR 3 billion benchmark bond. This matches the size of the largest World Bank transaction in the Euro market, a 10-year World Bank benchmark issued in 2009.

BNP Paribas, BofA Securities, Deutsche Bank and Natixis are the lead managers for the transaction.

The EUR 3 billion bond attracted orders from nearly 100 investors from Europe, Asia and the Americas. It was priced with a final spread of 28.9 basis points over the 0.25% February 2027 reference Bund and offers a yield of -0.105%.

“The successful issuance of the Euro benchmark marks the third World Bank benchmark this week, establishing a very strong start to 2020 for our funding program.  We are extremely pleased with the result. The high demand shows the commitment from a large, diverse and global set of investors supporting our sustainable development mission”, said Jingdong Hua, Vice President and Treasurer, World Bank.

Investor Distribution

By Geography

By Investor Type

Europe

87%

Banks/Bank Treasuries/Corporates

56%

Asia

9%

Central Banks/Official Institutions

25%

Americas

4%

 Asset Managers/Pension/Insurance

19%

Joint Lead Manager Quotes

“The World Bank was rewarded for moving quickly to capitalize on excellent market conditions and issue their largest Euro benchmark in over 10 years. The order book was superb in size and quality and enabled the issuer to raise EUR 3 billion, exceeding expectations. We believe the success of this transaction illustrates the strength of demand from European investors for diversification and will enable greater volumes of non-European issuers to access the Euro markets in 2020”, said Jamie Stirling, Head of Sovereign, Supranationals and Agencies (SSA) Debt Capital Markets, BNP Paribas.

“A fantastic transaction by the World Bank. Their largest Euro in over ten years in a very busy new issue market. The success of this issue will support the ongoing development of the World Bank’s Euro curve”, said Adrien De Naurois, Managing Director, BofA Securities.

“We are delighted to be involved in this landmark transaction that attests to the World Bank’s fantastic work dedicated to the Euro market over the past years. The impressive quality of tickets in the orderbook, its granularity and fast bookbuilding process underscore that the issuer’s long-term strategy has paid off. We congratulate the World Bank not only on this outstanding transaction, but also on building on its track record as a prime name the European market since its first ever Euro benchmark bond in 2007”, said Katrin Wehle, Director, SSA Origination, Deutsche Bank.

“Congratulations to the World Bank team for its largest Euro-denominated financing in the international bond market since over a decade and for its impeccable execution in Europe’s record weekly bond supply. The overwhelming demand from top tier quality accounts across continents drove this trade and resulted in remarkable orderbook. Natixis is honored to lead this transaction and to serve the World Bank”, said Nabil Menai, Global Head of Public Sector DCM, Natixis.

Transaction Summary

Issuer:

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

Issuer rating:

Aaa/AAA

Amount:

EUR 3 billion

Settlement date:

January 16, 2020

Maturity date:

January 15, 2027

Issue price:

100.738%

Coupon:

0.000% p.a.

Denomination:

EUR 1,000

Listing:

Luxembourg Stock Exchange

Lead managers:

BNP Paribas, BofA Securities, Deutsche Bank and Natixis

ISIN:

XS2102988354

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, 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.

Contact

Heike Reichelt
The World Bank
+1 202 477 2880
debtsecurities@worldbank.org


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