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PRESS RELEASE February 4, 2010

World Bank Returns to Kangaroo Market with New Australian Dollar Benchmark Bond

Sydney, February 4, 2010 – The World Bank (International Bank for Reconstruction and Development, rated Aaa/AAA) today priced a 5-year benchmark Kangaroo transaction. This transaction marks the return of the World Bank to this market after last October’s highly successful dual-tranche offering.

The A$1.5 billion 5-year fixed rate notes are due on 17 February 2015 and have a semi-annual coupon and yield of 5.75% and a reoffer price of 100%. This equates to a spread of 69 basis points over the ACGB 6.25% due 15 April 2015.

The joint lead-managers for the transaction are ANZ Banking Group, RBC Capital Markets and TD Securities, and the co-managers are Deutsche Bank and UBS.

The new benchmark offering was launched with an initial size of A$500 million but the demand grew quickly to allow an upsize to A$1.5 billion.

The distribution reflects the highest quality and breadth of investors. The 2015 notes were placed with institutional investors in Australia 56%, Asia 22%, North America 11% and Europe 11%. The investor mix included central banks and other official institutions, fund managers, bank treasuries, insurance companies and private banks. Investors remain attracted to the rarity value of the issuer in this market, the global recognition of the name, the strength of the credit, and the continued strategic approach of the World Bank in accessing the Kangaroo market.

This is the largest Kangaroo transaction so far this calendar year and matches the largest ever SSA Kangaroo transaction. It also adds another point to the World Bank Kangaroo curve, thus enhancing liquidity and the benchmark status of the issuer.

“This is an excellent outcome for the World Bank. We appreciate the support we have received from such a diverse group of investors for our return to the Australian dollar market. Offering investors worldwide liquid transactions in the currency or currencies of their choice is an integral part of our demand-driven funding strategy. The Australian dollar market is a strategically important market for us and we will continue our dialogue with investors both locally and internationally to do our best in meeting their investment needs,” said Doris Herrera-Pol, Director and Global Head of Capital Markets at the World Bank.


"This transaction highlights the demand for high quality liquid assets in the Australian dollar Kangaroo market from the Global Investor base. Liquidity has dramatically improved in 2010 with over A$7 billion priced already, this deal being the largest at A$1.5 billion, which demonstrates the appeal of the World Bank in Australian dollars. The Australian dollar market continues to offer diversification, attractive funding levels and liquidity for international borrowers," said Paul White, Head of Syndicate at ANZ Banking Group.

"The World Bank once again has captured the support and interest of investors around the globe and has added another important point in their Kangaroo yield curve. I don’t think we could have asked for a better follow up to the successful dual tranche offering in October 2009. The distribution was broad across both geography and investor types and this garners well for the future support of this issuer in the Kangaroo market. We are very pleased to have worked with the World Bank and our fellow syndicate in bringing this trade to fruition,” said Enrico Massi, Managing Director, Head of Debt Capital Markets - Asia Pacific at RBC.

"It is testament to the strength of the World Bank name in the Australian market, that they can follow up their highly successful dual tranche transaction from October with a new A$1.5 billion benchmark today. An SSA Kangaroo reaching out to over 50 investors is a fine achievement and TD Securities appreciated the opportunity to be part of it," said Tom Irving, Head of 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 are expected to qualify as eligible collateral for repurchase agreements for the Reserve Bank of Australia’s open market operations.

About the World Bank

The World Bank is a global development cooperative owned by its member countries. Its purpose is to help its members achieve equitable and sustainable economic growth in their economies and to find solutions to regional and global problems in economic development and environmental sustainability, all with a view to reducing poverty and improving standards of living. The International Bank for Reconstruction and Development (IBRD), rated Aaa/AAA (Moody’s/S&P) is owned by 186 countries. It is the oldest and largest entity in the World Bank Group and provides its members with financing, risk management products, and other financing services, as well as specialized expertise and strategic and convening services requested by its member countries. To fund this activity, IBRD has been issuing debt securities in the international capital markets for 60 years. The World Bank is one of the most recognized and innovative borrowers in the international capital markets. The World Bank designed and issued the first global bond in 1989. Information on the World Bank, its global bonds and a variety of other offerings available for investors is on the World Bank Treasury website: www.worldbank.org/debtsecurities.


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