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PRESS RELEASE January 15, 2013

World Bank Returns to Kangaroo Market with New 5-Year Australian Dollar Benchmark Offering*

Sydney, January 15, 2013 – The World Bank (International Bank for Reconstruction and Development, rated Aaa/AAA) today priced a global Australian Dollar bond, offering investors a new 5-year benchmark.

The A$700 million 5-year fixed rate notes mature on January 24 2018, offer a semi-annual coupon of 3.50%, and were priced at 99.727% to yield 3.56% semi-annually. This equates to a spread of 60 basis points over the ACGB 5.50% due 21 January 2018.

The joint lead-managers for this offering are ANZ Banking Group, Deutsche Bank and TD Securities.

The new benchmark was launched with an initial target size of A$400 million but demand grew quickly to allow for a total deal size of A$700 million.

“We are delighted to return to the Kangaroo market and are pleased with the excellent reception our bonds received. We would like to thank all the investors who continue to buy our bonds and therefore help to support the World Bank’s mandate to promote economic, social and environmental sustainability,” said Andrea Dore, Lead Financial Officer, Capital Markets at the World Bank.

The 2017 notes were placed with institutional investors in Asia (48%), Australia (30%), Europe/Middle East (12%) and Americas (10%), with about 30 orders from central banks and other official institutions, fund managers, corporates, and banks. Investors continue to appreciate the strategic approach of the World Bank in the Kangaroo market, as well as the global attraction and rarity of the World Bank name in addition to its credit strength.

Joint lead manager quotes:

"The transaction marks a successful return for IBRD to the Kangaroo market, the maturity and scarcity of the name in A$ attracting high quality investors in the orderbook across Australia, Asia, Japan Europe and the US," said Apoorva Tandon, Director, Syndicate at ANZ Banking Group.

"This successful transaction further demonstrates the high standing the World Bank has in the Australian Kangaroo market with a very diverse orderbook that further reinforces the support World Bank has with a broad group of investors,” said Craig Johnston, Syndicate Deutsche Bank.

“Risk conditions are different from when the World Bank last brought a transaction to the Kangaroo market, and despite the desire for higher spread products, the World Bank name still attracts a broad investor base and allows for a highly sought-after transaction,” 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. They will be listed on the Luxembourg Stock Exchange and will settle through Austraclear, Euroclear and Clearstream. The notes are expected to qualify as eligible collateral for repurchase agreements for the Reserve Bank of Australia’s open market operations.

*On August 21, 2013, IBRD agreed to increase the principal amount with a second tranche in the amount of AUD 500 million with an issue price of 99.332% (settlement date: August 28, 2013). The new total outstanding principal amount is AUD 1.2 billion.

Investor Distribution of the AUD 500 million Increase:
By GeographyBy Investor Type



Central Banks / Official Institutions




Banks / Corporates




Insurance / Pension Funds




Asset Managers


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 188 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).