Bond IBRD-Global 0% ( XS0213124018 ) in USD

Issuer	IBRD-Global
Market price	100 % ⇌
Country	United States
ISIN code	XS0213124018 ( in USD )
Interest rate	0%
Maturity	31/12/2099
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Minimal amount	/
Total amount	50 000 000 USD
Detailed description	The International Bank for Reconstruction and Development (IBRD) is an international financial institution that offers loans and advice to middle-income and creditworthy low-income countries for development projects. IBRD's Ultra-Long Zero-Coupon Bond: A Detailed Market Insight The financial markets are currently scrutinizing a unique debt instrument issued by the International Bank for Reconstruction and Development (IBRD), identified by the ISIN code XS0213124018. This particular bond issue presents several distinguishing characteristics that warrant comprehensive analysis for investors and market participants. The issuer, IBRD, stands as a pivotal institution within the global financial architecture. As a core component of the World Bank Group, IBRD operates as a global development cooperative, owned by 189 member countries. Its fundamental mandate is to alleviate poverty and foster sustainable development in middle-income and creditworthy poorer countries by extending financial products, advisory services, and risk management solutions. Recognized globally for its exceptionally strong credit ratings, typically AAA/Aaa, which are underpinned by the collective backing of its member nations and robust financial governance, IBRD bonds are generally regarded as highly secure and stable investment vehicles within the fixed-income landscape. This specific bond, denominated in United States Dollars (USD), carries a total issue size of 50,000,000 USD. A notable feature of this instrument is its zero-coupon structure, indicated by a 0% interest rate. This implies that the bond does not provide any periodic interest payments (coupons) to bondholders throughout its extended life. Historically, zero-coupon bonds are typically purchased at a discount to their face value, with the investor's return realized from the appreciation of the bond to its full face value at maturity. However, the current market price of this particular bond, standing at 100% of its par value, suggests that if acquired at this price, the effective yield to maturity for new investors would also be 0%, primarily offering principal preservation until redemption, assuming no adverse market fluctuations affect its value. Another striking characteristic is its exceptionally distant maturity date of December 31, 2099. This places the bond firmly within the category of ultra-long-dated debt instruments. Such instruments typically appeal to a very specific investor base, including large institutional investors like pension funds and insurance companies, which may seek to match exceptionally long-term liabilities or aim for principal protection over an extended time horizon. The bond's country of issuance is the United States, further anchoring it to the global reserve currency. While the concept of payment frequency for coupons is not applicable due to its zero-coupon nature, the full principal repayment is anticipated solely at its century-long maturity. This IBRD bond thus offers a distinctive proposition for those seeking an extremely secure, albeit non-yielding at its current par valuation, long-term asset in their diversified portfolios.