text: international bank for reconstruction and development the international bank for reconstruction and development ( ibrd ) is an international financial institution that offers loans to middle - income developing countries . the ibrd is the first of five member institutions that compose the world bank group and is headquartered in washington , d.c. , united states . it was established in 1944 with the mission of financing the reconstruction of european nations devastated by world war ii . the ibrd and its concessional lending arm , the international development association , are collectively known as the world bank as they share the same leadership and staff . following the reconstruction of europe , the bank 's mandate expanded to advancing worldwide economic development and eradicating poverty . the ibrd provides commercial - grade or concessional financing to sovereign states to fund projects that seek to improve transportation and infrastructure , education , domestic policy , environmental consciousness , energy investments , healthcare , access to food and potable water , and access to improved sanitation . the ibrd is owned and governed by its member states , but has its own executive leadership and staff which conduct its normal business operations . the bank 's member governments are shareholders which contribute paid - in capital and have the right to vote on its matters . in addition to contributions from its member nations , the ibrd acquires most of its capital by borrowing on international capital markets through bond issues . in 2011 , it raised $ 29 billion usd in capital from bond issues made in 26 different currencies . the bank offers a number of financial services and products , including flexible loans , grants , risk guarantees , financial derivatives , and catastrophic risk financing . it reported lending commitments of $ 26 . 7 billion made to 132 projects in 2011 . history the international bank for reconstruction and development ( ibrd ) and international monetary fund ( imf ) were established by delegates at the bretton woods conference in 1944 and became operational in 1946 . the ibrd was established with the original mission of financing the reconstruction efforts of war - torn european nations following world war ii , with goals shared by the later marshall plan . the bank issued its inaugural loan of $ 250 million ( $ 2 . 6 billion in 2012 dollars ) to france in 1947 to finance infrastructure projects . the institution also established its first field offices in paris , france , copenhagen , denmark , and prague in the former czechoslovakia . throughout the remainder of the 1940s and 1950s , the bank financed projects seeking to dam rivers , generate electricity , and improve access to water and sanitation . it also invested in france , belgium , and luxembourg 's steel industry . following the reconstruction of europe , the bank 's mandate has transitioned to eradicating poverty around the world . in 1960 , the international development association ( ida ) was established to serve as the bank 's concessional lending arm and provide low and no - cost finance and grants to the poorest of the developing countries as measured by gross national income per capita . governance the ibrd is governed by the world bank 's board of governors which meets annually and consists of one governor per member country ( most often the country 's finance minister or treasury secretary ) . the board of governors delegates most of its authority over daily matters such as lending and operations to the board of directors . the board of directors consists of 25 executive directors and is chaired by the president of the world bank group . the executive directors collectively represent all 189 member states of the world bank . the president oversees the ibrd 's overall direction and daily operations . as of july 2012 , jim yong kim serves as the president of the world bank group . the bank and ida operate with a staff of approximately 10 , 000 employees . funding although members contribute capital to the ibrd , the bank acquires funds primarily by borrowing on international capital markets by issuing bonds . the bank raised $ 29 billion usd worth of capital in 2011 from bonds issued in 26 different currencies . the ibrd has enjoyed a triple - a credit rating since 1959 , which allows it to borrow capital at favorable rates . it offers benchmark and global benchmark bonds , bonds denominated in non - hard currencies , structured notes with custom - tailored yields and currencies , discount notes in u.s. dollars and . in 2011 , the ibrd sought an additional $ 86 billion usd ( of which $ 5 . 1 billion would be paid - in capital ) as part of a general capital increase to increase its lending capacity to middle - income countries . the ibrd expressed in february 2012 its intent to sell kangaroo bonds ( bonds denominated in australian dollars issued by external firms ) with maturities lasting until 2017 and 2022 . services the ibrd provides financial services as well as strategic coordination and information services to its borrowing member countries . the bank only finances sovereign governments directly , or projects backed by sovereign governments . the world bank treasury is the division of the ibrd that manages the bank 's debt portfolio of over $ 100 billion and financial derivatives transactions of $ 20 billion . the bank offers flexible loans with maturities as long as 30 years and custom - tailored repayment scheduling . the ibrd also offers loans in local currencies . through a joint effort between the ibrd and the international finance corporation , the bank offers financing to subnational entities either with or without sovereign guarantees . for borrowers needing quick financing for an unexpected change , the ibrd operates a deferred drawdown option which serves as a line of credit with features similar to the bank 's flexible loan program . among the world bank group 's credit enhancement and guarantee products , the ibrd offers policy - based guarantees to cover countries ' sovereign default risk , partial credit guarantees to cover the credit risk of a sovereign government or subnational entity , and partial risk guarantees to private projects to cover a government 's failure to meet its contractual obligations . the ibrd 's enclave partial risk guarantee to cover private projects in member countries of the ida against sovereign governments ' failures to fulfill contractual obligations . the bank provides an array of financial risk management products including foreign exchange swaps , currency conversions , interest rate swaps , interest rate caps and floors , and commodity swaps . to help borrowers protect against catastrophes and other special risks , the bank offers a catastrophe deferred drawdown option to provide financing after a natural disaster or declared state of emergency . it also issues catastrophe bonds which transfer catastrophic risks from borrowers to investors . the ibrd reported $ 26 . 7 billion in lending commitments for 132 projects in fiscal year 2011 , significantly less than its $ 44 . 2 billion in commitments during fiscal year 2010 .