Supranationals - non-Europe

258 EuroWeek Financing supranationals and agencies

World Bank (IBRD)Rating Aaa, AAA, AAA

Robert B Zoellick President

John Gandolfo Acting vice president & treasurer

Vincenzo La Via Chief financial officer

Doris Herrera-Pol Director, global head of capital markets

George Richardson Head of capital markets

Heike Reichelt Head of investor relations and new products

Key officiaLs

Founded in 1944 to help Europe recover from the Second World War, the International Bank for Reconstruction and Development (IBRD) is one of five institutions that make up the World Bank Group. IBRD is the part of the World Bank (IBRD/IDA) that works with middle-income and creditworthy poorer countries to promote sustainable, equitable and job-creating growth, reduce poverty and address issues of regional and global importance.

oVeRView

Source: World Bank

$ bn

0

50

100

150

200

250

300

2005 2006

2007

2008 2009

2010

ToTaL asseTs

Source: World Bank

Structured 18%

Plain vanilla 44%

Benchmark/ globals 38%

issuance By TyPe (2010)

Source: World Bank

European 14%

Japan 21%

North America 20%

Non Japan Asia 30%

Other 15%

inVesToR Base By ReGion (2010)

Data at June 30, 2010.Source: World Bank

$ bn

0 5

10 15 20 25 30 35 40 45

Less than

1 year

1-2 years

2-3 years

3-4 years

4-5 years

More than

5 years

DeBT maTuRiTy PRofiLe

Source: World Bank

$ bn

0

20

40

60

80

100

120

140

2005 2006

2007

2008 2009

2010

Loans ouTsTanDinG

Source: World Bank

$ bn

0 5

10 15 20 25 30 35 40 45 50

2005

2006

2007

20

08 20

09 20

10

2011

GRoss BonD issuance

Source: World Bank

$ bn

33 34 35 36 37 38 39 40 41 42 43

2005 2006

2007

2008 2009

2010

sHaReHoLDeR’s equiTy

Supranationals - non-Europe

Financing supranationals and agencies EuroWeek 259

Risk weighting (Basel ii): 0%

RisK weiGHTinG

The World Bank (International Bank for Reconstruction and Development, or IBRD) is an international organisation created in 1944 and owned by its member countries. The five largest of its 187 shareholders are the United States (with 16.4% of the total voting power), Japan (7.9%), Germany (4.5%), France (4.3%) and the United Kingdom (4.3%).

owneRsHiP sTRucTuRe

Paid-in capital: $11.5bncallable capital: $178.4bnsubscribed capital: $189.9bnReserves & surplus: $218bn maximum gearing ratio: 01:01actual gearing ratio: 55%

Data at June 30, 2010. Source: World Bank

caPiTaL sTRucTuRe

Rank Lead manager amount $m no of issues

% share

1 Deutsche Bank 4,260 21 13.12

2RBC Capital Markets

3,947 17 12.15

3 JPMorgan 3,455 30 10.64

4 Morgan Stanley 3,161 9 9.73

5 Credit Suisse 2,450 4 7.54

6Bank of America Merrill Lynch

2,245 3 6.91

7 Barclays Capital 2,014 17 6.2

8 UBS 1,990 9 6.13

9 TD Securities Inc 1,798 49 5.54

10 RBS 1,658 13 5.11

subtotal 26,978 141 83.06

Total 32,479 191 100

Source: Dealogic (March 16, 2010 to March 15, 2011)

ToP BooKRunneRs

Pricing date January 19, 2011

Value $5bn

maturity date March 15, 2016

coupon 2.125%

spread to benchmark 28bp over USTs

Bookrunners Bank of America Merrill Lynch, Goldman Sachs, Morgan Stanley, RBC Capital Markets

Pricing date January 11, 2011

Value £300m

maturity date January 19, 2016

coupon 3m Libor +5bp

Bookrunners HSBC

RBC

Pricing date January 18, 2011

Value A$600m

maturity date October 21, 2014

coupon 5.5%

spread to swaps 13bp

Bookrunners ANZ, Commonwealth Bank of Australia, TD Securities

Source: Dealogic

RecenT DeaLs

standard & Poor’s

AAA, stable outlook

strengths•Verystrongcapitalpositionandadequateliquidity•Prudentfinancialmanagementandpolicies•Historicallystrongmembershipsupportand

expected continued treatment as a preferred creditor

S&P views IBRD’s capital position as strong; very strong with the inclusion of its AAA callable capital. The stable outlook also reflects the bank’s exceptionally strong track record, and adequate liquidity. The recent agreement to raise capital reflects well on the bank’s franchise value to its shareholders. Despite weak prospects for markedly improved profitability, and the increase in leverage S&P anticipates, in the absence of a wholesale abandonment of preferred creditor treatment by its borrowers and the failure of its highest-rated shareholders to meet their obligations to provide callable capital, IBRD’s current and expected capital position enables it to meet its obligations in any scenario S&P currently foresees.

Key RecenT RaTinG aGency commenTaRy

fitch Ratings

AAA, outlook stable

IBRD’s ratings reflect its strong shareholder support, high capitalisation, excellent asset quality and conservative risk management policies. IBRD’s capital is held by its 187 member countries. The largest shareholder is the US, with 16.8% of subscribed shares. Shareholders have paid in 6.1% of subscribed capital; the remainder can be called by the bank in case of financial difficulties. As 62.0% of callable capital was held by countries rated AA- or above at end June 2010, Fitch considers shareholders would extend support if needed. Capitalisation is one of the strongest of the multilateral development banks rated by Fitch,and the recently endorsed capital increase would enable the bank to strengthen capitalisation alongside steady growth in outstanding loans.

Key RecenT RaTinG aGency commenTaRy