Press Release - World Bank Successfully Prices Oversubscribed Landmark SDR Denominated Bond in China
© 2016 The World Bank Group, All Rights Reserved.
Washington, DC, August 31, 2016 – The World Bank (International Bank for Reconstruction and Development, IBRD) today priced the very first Special Drawing Rights (“SDR”)-denominated bond in the PRC National Interbank Bond Market (the “Interbank Market”).
The International Bank for Reconstruction and Development 2016 SDR Denominated Bonds (Series 1) (the “SDR Denominated Bond”) raised SDR 500 million (approximately equivalent to USD 700 million), have a maturity of 3 years and a coupon of 0.49% per annum. All payments will be made in Chinese renminbi (RMB).
The SDR Denominated Bonds were issued under the World Bank’s new SDR Denominated Issuance Program that was approved on August 12, 2016, by the People’s Bank of China (PBOC), with a total size of SDR 2 billion (approximately equivalent to USD 2.8 billion).
The joint lead managers for the SDR Denominated Bonds in the Interbank Market are Industrial and Commercial Bank of China Limited, HSBC Bank (China) Company Limited, China Construction Bank Corporation and China Development Bank Corporation. The bonds were 2.5 times oversubscribed with around 50 orders from bank treasuries (53%), central banks and official institutions (29%), securities companies and asset managers (12%), and insurance companies (6%).
“We are honored to support China in its efforts to internationalize its capital and currency markets through the launching of an SDR bond issue and the new Mulan market,” said Arunma Oteh, World Bank Vice President and Treasurer. “It is truly a pleasure for the World Bank to be the first to offer investors an opportunity to participate in this innovative investment product that supports sustainable development worldwide. We are grateful for the excellent collaboration with the Chinese authorities and financial partners.”
page source http://treasury.worldbank.org/
