By Cristal Cody
Eureka Springs, Ark., Oct. 20 – World Bank (International Bank for Reconstruction and Development) (Aaa/AAA) announced on Thursday that it priced $4.25 billion of global benchmark bonds in two tranches.
The bank sold $3 billion of 1.125% three-year bonds at 99.789 to yield 1.195%, or 22.7 basis points over Treasuries.
World Bank priced $1.25 billion of 1.875% 10-year bonds at 99.097 to yield 1.975%, or 23.3 bps over Treasuries.
The three-year book closed with investor orders of more than $4.3 billion, while the 10-year book closed with more than $2.3 billion of investor orders, the release said.
BofA Merrill Lynch, BNP Paribas Securities Corp., Citigroup Global Markets Inc. and Nomura Securities International, Inc. were the lead managers.
U.S. investors purchased 43% of the three-year bonds, while 38% went to Asia Pacific investors. European investors bought 14% of the bonds, 3% went to investors in the Middle East and Africa and 2% were purchased by non-U.S. Americas investors.
Central banks and official institutions took 56% of the debt, asset managers, pension funds and insurance companies bought 29% and bank treasuries, banks and corporate investors purchased 15% of the notes.
On the 10-year bond sale, Asia investors purchased 46%, European investors bought 25%, U.S. investors took 16%, non-U.S. Americas investors left with 10% of the bonds and investors in the Middle East and Africa bought 3%.
Central banks and official institutions purchased 42% of the 10-year bonds. Asset managers purchased 34%, banks and corporate investors bought 20% and pension funds and insurers took 4% of the bonds.
The global development financing cooperative is based in Washington, D.C.
| Issuer: | World Bank (International Bank for Reconstruction and Development)
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| Amount: | $4.25 billion
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| Description: | Global bonds
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| Maturity: | Aug. 10, 2020
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| Bookrunners: | BofA Merrill Lynch, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Nomura Securities International, Inc.
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| Senior co-lead managers: | Banca IMI, BMO Capital Markets Corp., Deutsche Bank Securities Inc., TD Securities (USA) LLC
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| Junior co-lead managers: | Barclays, CastleOak Securities, LP, Credit Agricole Securities (USA) Inc., Goldman Sachs & Co., HSBC Securities (USA) Inc., InCapital, J.P. Morgan Securities LLC, Mesirow, Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, Societe Generale, Royal Bank of Canada, Wells Fargo Securities LLC
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| Trade date: | Oct. 20
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| Settlement date: | Oct. 27
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| Ratings: | Moody’s: Aaa
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| S&P: AAA
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| Distribution: | Americas, Asia Pacific, Europe, Middle East and Africa
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|
|
| Three-year notes
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| Amount: | $3 billion
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| Maturity: | Nov. 27, 2019
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| Coupon: | 1.125%
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| Price: | 99.789
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| Yield: | 1.195%
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| Spread: | Treasuries plus 22.7 bps
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|
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| 10-year notes
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| Amount: | $1.25 billion
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| Maturity: | Oct. 27, 2026
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| Coupon: | 1.875%
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| Price: | 99.097
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| Yield: | 1.975%
|
| Spread: | Treasuries plus 23.3 bps
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