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International Bank for Reconstruction and Development - Exchange Offer - Results (LIBOR)

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ANNOUNCES RESULTS OF ITS EXCHANGE OFFERS


07 JUNE 2023


Full announcement including disclaimers and offer restrictions available via luxse


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"The Issuer hereby announces that it will accept all valid offers of Existing Notes for exchange submitted pursuant to the Exchange Offer. The table below sets out the aggregate principal amount of Existing Notes accepted in respect of each Series of Existing Notes and the aggregate principal amount of each series of New Exchange Notes to be issued.



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INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ANNOUNCES EXCHANGE OFFERS


10 MAY 2023


Full announcement including disclaimers and offer restrictions available via luxse


"Washington D.C., 10 May 2023. The International Bank for Reconstruction and Development (the “Issuer”)

hereby announces that it is inviting (subject to the “Offer and Distribution Restrictions” set out below and as

more fully set out in the Exchange Offer Memorandum, as defined below) eligible holders (the

“Noteholders”) of the Issuer’s existing floating rate Notes as listed in the table below (the “Existing Notes”)

to offer to exchange any and all of the Existing Notes for the relevant new exchange notes to be issued by the

Issuer (the “New Exchange Notes”) (each such invitation an “Exchange Offer” and together the “Exchange

Offers”)."


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"Background and Rationale for the Exchange Offers


The Financial Conduct Authority (“FCA”) announced on 5 March 2021 that all LIBOR settings will either cease to be provided by any administrator or will no longer be representative of the underlying market and economic reality (and that representativeness will not be restored) from certain specified dates, such date being immediately following 30 June 2023 in the case of 3 month U.S. dollar LIBOR. Accordingly, after this date, it is expected that 3 month U.S. dollar LIBOR will cease to be available or cease to be available in its current form. Regulators have continued to urge market participants to take active steps to implement the transition from LIBOR to risk-free rates ahead of the applicable LIBOR cessation dates.


In March 2022, the United States Congress enrolled the Adjustable Interest Rate (LIBOR) Act which was signed into law on 15 March 2022 (the “LIBOR Act”). The LIBOR Act provides a clear and uniform federal solution for transitioning legacy contracts governed by US law that either lack or contain insufficient contractual provisions addressing the permanent cessation of U.S. dollar LIBOR by providing for the transition from U.S. dollar LIBOR to a replacement rate at the end of June 2023. However, as the Existing Notes are governed by English law and no equivalent law was passed in England, this solution is not applicable. In addition, the Existing Notes do not include provisions which would enable the Issuer to implement corresponding amendments to the terms and conditions of the Existing Notes.


The Alternative Reference Rates Committee, a group of private-market participants convened by the Federal Reserve and the Federal Reserve Bank of New York to help ensure a successful transition from U.S. dollar LIBOR to alternative rates, has identified SOFR as the rate that represents best practice for use in a wide range of financial instruments. Accordingly the Issuer has adopted SOFR as a replacement benchmark rate for U.S. dollar LIBOR for several purposes including as the benchmark for issuing U.S. dollar floating rate notes under its Global Debt Issuance Facility and the Issuer has since issued multiple series of floating rate notes linked to SOFR under that facility."

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