Washington, D.C., February 13, 2020 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) priced a 10-year GBP global benchmark bond, raising GBP 1.75 billion from investors around the globe to support the financing of its sustainable development activities. This is the World Bank’s second GBP global bond of 2020, following its GBP 1.5 billion 7-year global bond issued in January.
The transaction represents the largest-ever GBP bond by a supranational. The high-quality order book exceeded GBP 2.8 billion and attracted over 100 investors. The bond offers an annual coupon of 1.000% and a semi-annual yield of 0.999%. It was priced at 36 basis points over the 0.0875% UK Gilt due October 2029. Barclays, J.P. Morgan, and TD Securities were joint lead managers for this transaction. The bond will be listed on the Luxemburg Stock Exchange.
Jingdong Hua, Vice President and Treasurer, World Bank said, "We were struck by the extraordinary demand from investors for this ten-year offering and appreciate their vote of confidence in the World Bank to support our biggest ever bond in British pounds. These funds help us finance important projects and programs that deliver sustainable development in our member countries.”
Investor Distribution:
By Geography | By Investor Type | ||
United Kingdom | 54% | Banks/Bank Treasuries/Corporates | 40% |
Europe (excl. U.K.) & Middle East | 17% | Asset Managers / Insurance / Pension Funds | 37% |
Americas | 22% | Central Banks / Official Institutions | 23% |
Asia | 7% |
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Joint Lead Manager Quotes
“The World Bank has demonstrated once again why it belongs to the top echelon of supranational, sovereign and agency (SSA) issuers, coming to market with its first-ever 10-year GBP-denominated benchmark and the first new 10-year GBP line since 2016 – and it was an extraordinary result! The World Bank came to the market not only with this milestone transaction in the issuer’s history, but at the same time with the largest-ever sterling benchmark by an SSA for a non-UK issuer. It was an honor that Barclays was able to be a part of this historic project for the World Bank,” said Lee Cumbes, Head of Public Sector EMEA, Barclays.
“A stellar sterling transaction from the World Bank. Today, they became the first SSA issuer to bring to market a 10-year issuance in this currency since 2016. Through tapping into strong demand for this undersupplied tenor, and timing their transaction perfectly, they were able to issue the largest ever 10-year SSA GBP deal. J.P. Morgan were privileged to be involved,” said Keith Price, Managing Director, Head of Frequent Borrowers Group, J.P. Morgan.
“We congratulate the World Bank team on their largest ever bond issue in the sterling market. The World Bank was rewarded with valuable investor diversification by issuing in this part of the yield curve. This new bond will serve as an important liquid reference point for buyers of World Bank denominated bonds in GBP, as well as for the broader SSA market,” said Mark Byrne, Director, Head of European Syndicate, TD Securities.
Transaction Summary:
Issuer: | World Bank (International Bank for Reconstruction and Development, IBRD) |
Issuer rating: | Aaa/AAA |
Amount: | GBP 1,750,000,000 |
Settlement date: | February 21, 2020 |
Maturity date: | December 21, 2029 |
Issue price: | 99.987% |
Issue yield: | 0.999% semi-annual |
Denomination: | GBP 1,000 + GBP 1,000 |
Coupon: | 1.000% per annum |
Listing: | Luxembourg Stock Exchange |
ISIN: | XS2122575678 |
Clearing systems: | Euroclear/ Clearstream |
Joint lead managers: | Barclays, J.P. Morgan (B&D), TD Securities |
With annual issuances between US$50-US$60 billion, World Bank bonds support the financing of programs that support the Sustainable Development Goals. World Bank bonds are aligned with the sustainability bond guidelines published by the International Capital Markets Association (ICMA). The World Bank is also a member of the Executive Committee of the Green Bond and Social Bond Principles. A key priority for the World Bank’s capital markets’ engagement is building strategic partnerships with investors to promote the importance of private sector financing in sustainable development.
Disclaimers
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 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, Head of Investor Relations and New Products
World Bank Treasury
debtsecurities@worldbank.org
