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PRESS RELEASE February 28, 2012

World Bank Returns to Kangaroo Market with New Dual-Tranche Australian Dollar Benchmark Offering

Sydney, February 28, 2012 – The World Bank (International Bank for Reconstruction and Development, rated Aaa/AAA) today priced two new global Australian Dollar bonds, offering investors new 5-year and 10-year benchmarks. This dual-tranche offering marks the return of the World Bank to the Kangaroo market after more than one year.

1The A$700 million 5-year fixed rate notes are due on March 7, 2017, offer a semi-annual coupon of 4.50%, and were priced at 99.305% to yield 4.675% semi-annually. This equates to a spread of 99.75 basis points over the ACGB 6% due July 21, 2017.

The A$350 million 10-year fixed rate notes are due on  March 7, 2022, offer a semi-annual coupon of 5.00%, and were priced at 99.514% to yield 5.0625% semi-annually. This equates to a spread of 99 basis points over the ACGB 5.75% due July 15, 2022.

The joint lead-managers for this dual-tranche offering are ANZ Banking Group, TD Securities, and Westpac Institutional Bank.

The new benchmark bonds were launched with an initial target aggregate size of A$600 million for both issues, but demand grew quickly to allow for a total aggregate size of A$1.05 billion.

“We are pleased to return to the Kangaroo market. Because of the strong reception from a diverse group of domestic and international investors, we were able to add liquidity to the World Bank Australian Dollar benchmark curve and extend the maturity to 10 years. We look forward to continuing to be present in this very important market to meet investors’ needs,” said Doris Herrera-Pol, Director and Global Head of Capital Markets at the World Bank.

The 2017 notes were placed with institutional investors in Asia 50%, Australia 44%, Americas 3%, Europe 2%, and Middle East/Africa 1%, whilst the 2022 notes were placed with institutional investors in Asia 71%, Australia 15%, Americas 2%, and Europe 12%. The distribution reflected the highest quality and breadth of investors, with over forty orders from central banks and other official institutions, fund managers, corporates, and banks. Investors remain attracted to the global recognition of the World Bank name and the strength of its credit, as well as the rarity value, and continued strategic approach of the World Bank, in the Kangaroo market.

This is the largest Kangaroo transaction launched by a supranational since the summer of last year.

Joint lead manager quotes:

 "Another successful dual-tranche offering by the World Bank in the Kangaroo market demonstrates the following that the issuer has with Australian dollar investors across the globe. The order book was of the highest quality seen in sometime for a supranational borrower in the Kangaroo market," said Apoorva Tandon, Director, Syndicate at ANZ Banking Group.

“A$1 billion transactions are rare in the Australian SSA Kangaroo market, this offering from the World Bank being the first such trade in 8 months, comes after both the onset of the European debt crisis and the proposed Basel 3 / APRA liquidity rule clarification. The large volume, quantity and diversification of accounts and fair pricing are testaments to the continued strength of the World Bank name in the AUD market. TD Securities appreciated the opportunity of bringing World Bank back to the market for the first time in over a year," said Tom Irving, Head of Asia Syndicate at TD Securities.

"This dual-tranche 5 and 10-year deal is a reflection of the World Bank’s strategic approach to the Kangaroo market.  These new price points will help promote liquidity in their curve and underpin the popularity of the name in this market,” said Mark Goddard, Head of Debt Securities at Westpac Institutional Bank.

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.

1 On September 3, 2014, IBRD agreed to increase the principal amount with a second tranche in the amount of AUD 300 million with an issue price of 103.893% (settlement date: September 10, 2014). The new total outstanding principal amount is AUD 1 billion.

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 for investors is available on the World Bank Treasury website: (www.worldbank.org/debtsecurities).


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