By Andrea Heisinger
New York, Feb. 7 - The World Bank's International Bank of Reconstruction and Development gave further details in a press release of its $5 billion sale of global notes (Aaa/AAA/AAA) done on Wednesday.
A $4.25 billion tranche of 0.5% three-year notes sold at 99.918 to yield 0.526% with a spread of mid-swaps plus 5 basis points, or Treasuries plus 14.8 bps.
A $750 million tranche of 2.125% 10-year notes priced at 99.419 to yield 2.19% with a spread of 12 bps over mid-swaps or Treasuries plus 20.5 bps.
Bookrunners were BNP Paribas Securities Corp., Goldman Sachs & Co., HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC.
"This is our first [U.S. dollar] global bond issuance in a year," Doris Herrera-Pol, director and global head of capital markets at the World Bank, said in the press release.
"The dual-tranche issuance was a successful venture into unconventional territory. The dual-tranche approach to the transaction achieved several goals for us: raising a large amount of funds for our development programs, offering our core investor franchise the popular three-year maturity which is most in demand, and taking a first step to refresh our presence and cater to investors new to the World Bank in the longer end of the yield curve with the 10-year tranche."
Among investors in the three-year notes, 42% came from the Americas and 27% from Asia, according to the release. There was 54% interest from central banks and official institutions and 25% from asset managers.
The 10-year notes saw 39% of investor interest come from Europe and 35% from Asia. Banks and corporate names made up 52% of the total while another 20% came from insurance and pension funds.
The IBRD offers loans to developing countries and is based in Washington, D.C.
| Issuer: | International Bank of Reconstruction and Development
|
| Issue: | Global notes
|
| Amount: | $5 billion
|
| Bookrunners: | BNP Paribas Securities Corp., Goldman Sachs & Co., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC
|
| Trade date: | Feb. 6
|
| Settlement date: | Feb. 13
|
| Ratings: | Moody's: Aaa
|
| Standard & Poor's: AAA
|
| Fitch: AAA
|
|
|
| Three-year notes
|
| Amount: | $4.25 billion
|
| Maturity: | April 15, 2016
|
| Coupon: | 0.5%
|
| Price: | 99.918
|
| Yield: | 0.526%
|
| Spread: | Mid-swaps plus 5 bps, Treasuries plus 14.8 bps
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | Feb. 13, 2023
|
| Coupon: | 2.125%
|
| Price: | 99.419
|
| Yield: | 2.19%
|
| Spread: | Mid-swaps plus 12 bps, Treasuries plus 20.5 bps
|
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