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PRESS RELEASE January 18, 2011

World Bank Returns to Kangaroo Market with Increases to its October 2014 and October 2020 Benchmarks

Washington DC, January 18, 2011 – The World Bank (International Bank for Reconstruction and Development, rated Aaa/AAA) today priced increases to both its existing Australian dollar benchmark bonds due October 21, 2014 and October 1, 2020. 

The details for the increased lines are as follows:

The existing 5.50% October 21, 2014 line was increased by A$600 to a total of A$1.4 billion. The increase has an issue price of 99.633 (plus 1.481 accrued interest) to yield 5.6075% (semi-annual), which equates to a spread over the June 15, 2014 ACGB of 49.25 basis points. 

The existing 5.75% October 1, 2020 line was increased by A$400 million to a total of A$1.1 billion. The increase has an issue price of 97.105 (plus 1.864 accrued interest) to yield 6.15% (semi-annual), which equates to a spread over the April 15, 2020 ACGB of 65.5 basis points.

The settlement date for both transactions is January 27, 2011.

The joint lead-managers for the transactions are ANZ Bank, Commonwealth Bank and TD Securities.

The increases were launched with an initial target aggregate size of A$800 million for both issues, but demand grew quickly to allow for a total aggregate increase of A$1.0 billion.

The distribution reflects the highest quality and breadth of investors. The notes were placed with institutional investors in Australia 70%, Asia 17%, Japan 7% and Europe 6%. The investor mix included official institutions, fund managers, banks and insurance companies. 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 Australian Dollar benchmark market, that includes supporting liquidity of its offerings.

“With these transactions, we're bringing the volume of all our outstanding AUD benchmarks to above A$ 1 billion each, adding liquidity to the World Bank Australian Dollar benchmark curve in response to investors' demand. We appreciate the positive reception from domestic and international investors for the World Bank” said Doris Herrera-Pol, Director and Global Head of Capital Markets at the World Bank.

“Another very successful offering from the World Bank in the A$ Kangaroo market, this dual tranche offering brings every outstanding line to a minimum benchmark size of A$1 billion, demonstrating the commitment and liquidity that the World Bank offers investors in this market" said Paul White, Global Head of Syndicate at ANZ.

"CBA is pleased to have worked with the World Bank again as they returned to the Kangaroo market. The deal’s strong reception across the two tranche offering reflects the value attributed to the World Bank name from global investors in Australian dollar denominated product” said Paul O’Brien, Head of Syndicate at Commonwealth Bank.

"It was good to see support across the investor spectrum. We saw good participation from Asia and Europe to supplement the domestic interest. The World Bank is always very well received in the Kangaroo market and we are pleased to see both tranches now above A$1 billion” said Ben Stewart, 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 are 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 187 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 overriding goal is to achieve major, sustainable improvements in standards of living worldwide. It has been issuing bonds in the international capital markets for over 60 years to fund its activities. Information on bonds for investors is available on the World Bank Treasury website: (