Learn how the World Bank Group is helping countries with COVID-19 (coronavirus). Find Out

Skip to Main Navigation
PRESS RELEASE March 4, 2020

World Bank Successfully Prices USD 3.5 Billion 5 Year Benchmark Bond for Global Investors

Washington, D.C., March 4, 2020 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced a USD 3.5 billion 5-year global benchmark bond that matures on March 11, 2025.

Strong global investor demand led to an orderbook that reached over USD 4 billion, with over 80 orders from investors, anchored by central banks and bank treasuries.  Other investors included official intuitions, asset managers, as well as pension and insurance funds.

The bond pays a semi-annual coupon of 0.75% with an issue price of 99.429% and a final spread of 15.65 basis points over the 1.125% US Treasury due February 28, 2025 reference bond, offering investors a yield of 0.867%.  Joint lead managers for this global bond are HSBC, J.P. Morgan, Morgan Stanley and Nomura.

“We are extremely happy with the result of this USD global benchmark which comes at a moment of significant market volatility,” said Jingdong Hua, Vice President and Treasurer, World Bank.  “The successful transaction, which is part of World Bank’s scheduled funding program, demonstrates its continuous access to capital markets even in times of uncertainty.  We appreciate investors’ enduring confidence in the World Bank which enables us to fulfill our mandate as a Multilateral Development Bank to fund sustainable development in our member countries.”

Investor Distribution

By Geography

By Investor Type

Asia

38%

Central Banks/Official Institutions

46%

Europe

31%

Bank/Bank Treasuries/Corporates

41%

Americas

25%

Asset Managers/Insurance/Pension Funds

13%

Middle East & Africa

6%

 

 

Joint Lead Manager Quotes

“World Bank demonstrated its market leadership with this transaction, after braving the volatile backdrop to achieve an excellent outcome. The high-quality and granular final orderbook, with notable participation from central banks and official institutions, is a testament to the strength of the World Bank’s credit quality,” said Asif Sherani, Head of SSA Syndicate, HSBC.

“Well done to the World Bank team for swiftly seizing the opportunity to access the USD primary market in a period of heightened volatility and an unprecedented yield rally. Amid global uncertainties, the World Bank remains a leader in the capital markets as it issues a $3.5bn 5-year benchmark at the lowest-ever coupon for this tenor. A fantastic outcome especially given the backdrop,” said Keith Price, Head of Frequent Borrower Group at J.P. Morgan.

“Despite the ongoing market volatility, the World Bank took once again the lead in the USD supranational, sovereign and agency (SSA) market, building investor’s confidence and paving the way for other issuers to follow suit. The timing of this successful transaction is exactly what the market needed, and Morgan Stanley was delighted to be involved,” said Ben Adubi, Head of SSA Syndicate at Morgan Stanley.

“With this trade, the World Bank has further cemented its reputation for guiding the market in extremely turbulent times.  The World Bank was the perfect issuer to energize the SSA USD market and the exceptionally strong orderbook reflects their attraction as a safe haven,” said Spencer Dove, Head of SSA DCM at Nomura.

 

Issuer:

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

Issuer rating:

Aaa/AAA

Amount:

USD 3.5 billion

Format:

Global

Settlement date:

March 11, 2020

Maturity date:

March 11, 2025

Issue price:

99.429%

Issue yield:

0.867% semi-annual

Coupon:

0.750% semi-annual

Denomination:

USD 1,000

Listing:

Luxembourg Stock Exchange

Lead managers:

HSBC, J.P.Morgan, Morgan Stanley, Nomura

Senior co-lead managers:

BMO, Deutsche Bank and Wells Fargo

ISIN:

US459058JA24

 

 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 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.

 

Contact

Heike Reichelt, Head of Investor Relations and New Products
World Bank Treasury
debtsecurities@worldbank.org


Api
Api