WASHINGTON, January 3, 2025 – The World Bank (International Bank for Reconstruction and Development, IBRD, rated Aaa/AAA) has priced its first benchmark of 2025 – an Australian dollar 1.75 billion 5-year bond due January 10, 2030.
The transaction received over 70 orders, totaling more than AUD 3.1 billion, due to IBRD’s high credit quality and support for the World Bank’s mission. These bonds support the financing of green and social projects in IBRD member countries.
The 4.35% p.a. fixed-rate bond equates to a spread of +42 basis points over the Australian government bond due November 2029. The joint-lead managers for the transaction are ANZ, Commonwealth Bank of Australia, Nomura, and RBC.
“We are pleased to kick off 2025 with a transaction in the Australian dollar market again – this is an excellent start to the World Bank’s funding program for the new year,” said Jorge Familiar, Vice President and Treasurer, World Bank. “This is a core market for a diverse group of global investors and this benchmark provides them an opportunity to contribute to the World Bank’s mission to end extreme poverty and boost shared prosperity on a livable planet through a liquid, high quality investment.”
Investor Distribution
By Geography | By Investor Type | ||
Asia | 42% | Banks/Bank Treasuries | 48% |
Australia | 34% | Asset Managers/Insurance/Pension Funds | 33% |
EMEA and Americas | 24% | Central Banks / Official Institutions | 19% |
Joint Lead Manager Quotes
“ANZ is pleased to have once again partnered with the World Bank on this highly successful 5-year Sustainable Development Bond. The impressive AUD 3.1 billion final orderbook, and the World Bank's ability to tighten the final price, underscores the robust and diverse investor base that they have cultivated in the Kangaroo market. The AUD 1.75 billion final transaction has set a solid benchmark for the Kangaroo Sovereign, Supranational and Agency (SSA) market for 2025," said Brenton Smith Director Debt Syndicate, ANZ.
“Congratulations to the World Bank on opening the Australian public syndication market for 2025 with an outstanding AUD 1.75 billion Sustainable Development Bond. The transaction attracted diverse investors from domestic and international buyers, and we were particularly pleased to see the Australian investor base engaging meaningfully in the SSA sector at the start of the year. CBA is delighted to have been involved,” said Nikolaus Romuld Head of Bond Syndicate and High Grade Origination, Commonwealth Bank of Australia.
“Another impressive return to the Kangaroo market from the World Bank. As has almost become customary, the World Bank opened the Kangaroo market for 2025 in an impressive fashion with a diverse range of investors supporting this AUD 1.75 billion transaction. The World Bank’s commitment to the Australian dollar market has once again bore fruit,” said Harald Eikeland Head of APAC Syndicate, RBC Capital Markets.
“Once again, the World Bank have reopened the world’s bond markets for 2025 with a sizeable Kangaroo benchmark. The deal saw a record number of investors participate, and to my knowledge drew more support than any other SSA issuer in this market. Nomura was delighted to be part of this 2025 market opening transaction,” said Oliver Holt, Head of AeJ DCM and Syndicate.
Transaction Summary
Issuer: | World Bank (International Bank for Reconstruction and Development, IBRD) |
Issuer rating: | Aaa/AAA |
Amount: | AUD 1.75 billion |
Settlement date: | January 10, 2025 |
Minimum denominations and minimum holding: | AUD 1,000. The minimum consideration payable when offered or sold in Australia: AUD 500,000 |
Coupon: | 4.35% p.a. payable semi-annually |
Maturity date: | January 10, 2030 |
Re-offer price: | 99.978% |
Re-offer yield: | 4.355%% (semi-annual) |
Listing: | Luxembourg Stock Exchange |
Clearing systems: | Austraclear / Euroclear / Clearstream |
ISIN: | AU3CB0317063 |
Joint lead managers: | ANZ, Commonwealth Bank of Australia, Nomura and RBC |
About the World Bank
The World Bank (International Bank for Reconstruction and Development, IBRD), rated Aaa/AAA (Moody’s/S&P), is an international organization. Created in 1944, it is the original member of the World Bank Group and operates as a global development cooperative owned by 189 nations. The World Bank provides loans, guarantees, risk management products, and advisory services to middle-income and other creditworthy countries to support the Sustainable Development Goals and to end extreme poverty and promote shared prosperity. It also provides leadership to coordinate regional and global responses to development challenges. The World Bank has been issuing sustainable development bonds in the international capital markets for over 70 years to fund programs and activities that achieve a positive impact. More information on World Bank bonds is available at www.worldbank.org/debtsecurities.
World Bank bonds support the financing of programs that further the Sustainable Development Goals (SDGs). World Bank bonds are aligned with the Sustainability Bond Guidelines published by the International Capital Market Association and as such support the financing of a combination of green and social, i.e., “sustainable development” projects, programs and activities in IBRD member countries as described in the World Bank Sustainable Development Bond Framework. The World Bank is also a member of the Executive Committee of the Green Bond, Social Bond, and Sustainability Bond Principles. A key priority for the World Bank’s capital markets’ engagement is building strategic partnerships with investors to promote the importance of private sector financing in sustainable development. The World Bank’s Sustainable Development Bond Impact Report describes how the World Bank engages with investors on the SDGs and raises awareness for specific development challenges.
Disclaimers
This press release is not an offer for sale of securities of the International Bank for Reconstruction and Development ("IBRD"), also known in the capital markets as "World Bank". Any offering of World Bank securities will take place solely on the basis of the relevant offering documentation including, but not limited to, the prospectus, term sheet and/or final terms, as applicable, prepared by the World Bank or on behalf of the World Bank, and is subject to restrictions under the laws of several countries, including under the laws of New South Wales. World Bank securities may not be offered or sold except in compliance with all such laws. The World Bank Sustainable Development Bond Framework, the World Bank’s Sustainable Development Bond Impact Report, and the information set forth therein are not a part of, or incorporated by reference into, the offering documentation.
Net proceeds of the securities described herein are not committed or earmarked for lending to, or financing of, any particular projects or programs. Payments on the securities described herein are not funded by any particular project or program.
Contact
Investor Relations and Sustainable Finance
World Bank Treasury
debtsecurities@worldbank.org
