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PRESS RELEASE August 13, 2020

World Bank Prices 7-Year USD 700 Million SOFR-Linked Bond

WASHINGTON, DC, August 13, 2020 - The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) priced a USD 700 million 7-year benchmark bond linked to the Secured Overnight Financing Rate (SOFR) index. The bond matures on August 19, 2027.

This transaction responds to investor demand from US financial institutions and global bank treasuries for high-quality, longer dated SOFR-linked floating rate product. This is the longest dated SOFR-linked bond issued by any SSA issuer.

An oversubscribed order-book facilitated growth of the transaction from the original USD 500 million, to a final USD 700 million. Sole lead manager for this transaction is Wells Fargo Securities.

Andrea Dore, Head of Funding, World Bank Treasury said: “We are committed to providing investors with high-quality investment options and continue to contribute to the development of the SOFR market. We are delighted to see many new investors participating in the transaction and would like to thank investors for their trust in the World Bank.  We are also grateful for the strong collaboration with Wells Fargo”. 

Carlos Perezgrovas, Head of SSA Origination, Wells Fargo Securities said: “Wells Fargo is delighted to partner with prestigious borrower, World Bank, to push the limits of capital markets and deliver the longest dated SOFR-Linked FRN bond issued by any SSA borrower in the market. An equally important achievement was to garner strong demand from the US investor base. World Bank, again, demonstrating true leadership in the space”.

Investor Distribution                                                                                                 

by Investor Type

 

by Region

 

 

Bank Treasuries

87%

Americas

 

72%

Asset Managers

13%

Europe, Middle East, Africa

 

28%

 

Transaction Summary 

Issuer:

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

Issuer rating:

Aaa /AAA (Moody's/S&P)

Amount:

USD 700,000,000

Settlement date:

August 19, 2020

Maturity date:

August 19, 2027

Coupon:

Compounded SOFR + 43, Quarterly, ACT/360

Index Convention:

SOFR Index where SOFR IndexStart and SOFR IndexEnd will be 5 days prior to Interest Period

Coupon payment dates:

Each February 19, May 19, August 19 and November 19

Reoffer Price:

100.00%

Clearing systems:

Fedwire, Euroclear, Clearstream

Listing:

Luxembourg Stock Exchange

Sole lead manager:

Wells Fargo Securities, LLC

ISIN:

US459058JF11

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 70 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.

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.

The net proceeds from the sale of World Bank securities are used to finance sustainable development projects and programs in World Bank’s member countries without being committed or earmarked for lending to, or financing of, any particular projects or programs. Returns on World Bank securities are not linked to the performance of any particular project or program.

Contact

Heike Reichelt, Head of Investor Relations and Sustainable Finance

World Bank Treasury

debtsecurities@worldbank.org


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