PRESS RELEASE November 19, 2018

World Bank Prices Third Green Benchmark Bond in a Symbolic Week, Marking the 10-Year Anniversary of the Green Bond Market

Washington, D.C., November 16, 2018 --The World Bank (International Bank for Reconstruction and Development, IBRD, rated Aaa/AAA) capped off a week of green bond anniversary issuances with the pricing of a benchmark Australian dollar bond in the Kangaroo market, following the issue of two benchmark bonds, one in US dollars and one in euros. The AUD 300 million, seven-year green bond brings the World Bank’s total green bond program to almost US$13 billion.

As is the practice with World Bank green bonds, the bond was placed entirely with investors following environmentally and socially-focused investment principles and supporting sustainable capital markets. Investors included Altius Asset Management, AMP Capital, Australian Ethical, BlackRock, Invesco, Nikko AM, TCorp Investment Management, UBS Global Asset Management and UniSuper.

The AUD 300 million bond matures on 26 November 2025 and has a semi-annual coupon of 2.90% p.a. with an issue price of 99.639%. This equates to a spread of 48 basis points over the Australian Government Bond (ACGB) due April 2025. Settlement date is 26 November 2018.

The joint lead-managers for the transaction are CBA, RBC Capital Markets and TD Securities.

”We are absolutely thrilled to mark the ten-year anniversary of the green bond with three benchmark bonds in one week,” said Arunma Oteh, World Bank Vice President and Treasurer. “The success of our green bond program is due to the support from investors and our capital market partners, and a powerful demonstration that in partnership we can continue to evolve towards sustainable capital markets.”

Investor Distribution

World Bank AUD 300 million 2.9% due November 2025

Distribution by Geography

Distribution by Investor Type

Australia

74%

Asset Managers/ Pension/ Insurance

87%

Asia

14%

Banks/ Bank Treasuries/ Corporates

1%

US

8%

Central Banks/ Official Institutions

12%

Europe

4%

  


Transaction Summary*

Issuer

World Bank (International Bank for Reconstruction and Development, IBRD)

Issuer rating

Aaa/AAA

Amount

AUD 300 million

Settlement date

26 November 2018

Maturity date

26 November 2025

Issue price

99.639%

Coupon

2.90% per annum, payable semi-annually in arrear

Coupon payment dates

26 May and 26 November of each year from and including 26 May 2019 up to and including the maturity date

Denomination

AUD 1,000 - Minimum consideration for investors in Australia is AUD 500,000

Clearing system

Austraclear/Euroclear/Clearstream

Joint lead managers

CBA, RBC Capital Markets, TD Securities

ISIN

AU3CB0258739

Listing

Luxembourg Stock Exchange


* This press release does not constitute an offer for sale of the securities described.  The offering and sale of the securities described in this document are subject to restrictions under the laws of New South Wales. The Notes may not be offered or sold except in compliance with all applicable laws and may not be eligible for sale in certain jurisdictions or to certain persons.

Joint Lead Manager Quotes

“Another highly successful transaction by the World Bank in the Kangaroo market in what has been a very busy year for the team and follows their highly publicized inaugural Kangaroo blockchain bond. Commonwealth Bank of Australia is pleased to have been involved in both transactions and also host the World Bank team in Australia to discuss these funding opportunities with investors. The highly successful outcome demonstrates the increasing focus that Australian Dollar investors have towards socially responsible investing.” James Hammermaster, Director, CBA.

“RBC Capital Markets is pleased to have again partnered with the World Bank for their second AUD denominated green bond after they opened the Australian green bond market in April 2014. The transaction window was selected to coincide with the tenth anniversary of the opening of the green bond market and underscores the World Bank's market leading position in the development of global debt capital markets. With climate change continuing to dominate global headlines, green bonds provide an opportunity for socially responsible investors to participate in projects that promote environmental sustainability. RBC Capital Markets' involvement is aligned to our broader sustainability strategy and we are proud to be associated with the transaction.” Daniel Chandler, Director, Debt Capital Markets Asia-Pacific at RBC Capital Markets.

“Congratulations to the World Bank team on a 10-year anniversary of their first green bond. Well received USD, EUR and AUD trades that marked the occasion this week are only a small testament to the work IBRD has done for the development and growth of the ESG space over the last decade. AUD Kangaroo Green trade once again highlights the exceptional support World Bank continues to receive in the Australian market. Fully allocating A$300m to ESG minded investors is no easy feat but something World Bank has successfully challenged and achieved due to its continued leadership in this space.” Yuriy Popovych, Director, Asia Syndicate at TD Securities.

The notes are issued under the laws of New South Wales and documented under the World Bank's Global Debt Issuance Facility. The notes will be listed on the Luxembourg Stock Exchange, will settle through Austraclear, Euroclear and Clearstream, and qualify as eligible collateral for repurchase agreements for the Reserve Bank of Australia’s open market operations.

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 operates as a global development cooperative owned by 189 nations. It provides its members with financing, expertise and coordination services so they can achieve equitable and sustainable economic growth in their national economies and find effective solutions to pressing regional and global economic and environmental problems. The World Bank Group has two main goals: to end extreme poverty and promote shared prosperity. The World Bank (IBRD) seeks to achieve them primarily by providing loans, risk management products, and expertise on development-related disciplines to its borrowing member government clients in middle-income countries and other creditworthy countries, and by coordinating responses to regional and global challenges. The World Bank has been issuing bonds in the international capital markets for over 60 years to fund its sustainable development activities and achieve a positive impact. Information on bonds for investors is available on the World Bank Treasury website: www.worldbank.org/debtsecurities.


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