August 23, 2017 / 8:47 AM / a month ago

REFILE-World Bank US$3bn 3yr synopsis and stats

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By Julian Baker

LONDON, Aug 23 (IFR) - World Bank priced a US$3bn 3yr Global yesterday via BAML, Citi, JP Morgan (B&D) and TD.

The mandate was announced Monday afternoon with IPTs at MS-4 area. Guidance the next morning was unchanged with IoIs at US$3.3bn+, and the spread was set in line at MS-4 just before lunch on books of US$4.1bn+.

The final book size was not updated beyond that, the deal only “oversubscribed” with “particularly strong” participation from central banks/official institutions as well as from asset managers.

In RV terms World Bank US$4bn Apr 2020s, its last 3yr from March, were MS-7.5 bid on screens pre-mandate, with fair value anywhere from MS-4.5 to MS-6 depending on which other World Bank markers were used.

The reoffer of MS-4 was not this year’s best new issue SSA swap spread at the tenor, but 16.7bp was the tightest Treasury margin - if as always still a long way back from World Bank’s one-time target, the GSEs.

Leads were less gushing than usual for a World Bank deal, BAML calling it “an example of World Bank’s success” and Citi noting “a very attractive cost of financing” and increased US investor diversification.

TD tried harder to uphold the fawning tradition, being “delighted to be involved in such a successful deal”, but in the end was comprehensively eclipsed by JPM: “The World Bank proves that its affinity with investors remains so strong, that it can virtually issue a new bond any day of the week, including Sunday.”

Distribution saw the US take 43%, Asia 29%, non-US Americas 12%, Europe 11%, and Middle East 5%. Central banks/official were 49%, asset managers/pension/insurance 35%, and bank treasuries/banks/corps 16%.

Full terms: US$3bn 1.625% due 4 Sep 2020, pay 29 Aug, reoffer 99.979 for a 1.632% ytm, spread MS-4, equivalent to CT3+16.7 (at 100-03.25, HR 101%), SEC exempt Global, off GDIF, 1k/1k denoms, ISIN US459058GA50, rated Aaa/AAA.

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