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PRESS RELEASE September 13, 2013

World Bank Returns to Kangaroo Market with New Dual-Tranche Australian Dollar Benchmark Offering: World Bank launches Largest Kangaroo Floating Rate Note Transaction in the SSA Market

Sydney, September 13, 2013 – The World Bank (International Bank for Reconstruction and Development, rated Aaa/AAA) today priced a dual-tranche Australian dollar transaction, offering investors a new 5-year Floating Rate Note (FRN) and an increase of the AUD1.00bn 6.00% November 2016 benchmark. The floater is the largest Kangaroo FRN transaction in the primary market by a Sovereign/Supranational/Agency (SSA) issuer and the World Bank’s first floating rate Australian Dollar Benchmark. 

The new AUD750m Floating Rate Note matures on September 24, 2018, was issued at par, and has a coupon with a spread of 21 basis points over the 3-month BBSW.

The AUD300m increase of the World Bank’s 6.00% November 9, 2016 bond brings the total outstanding on this line to AUD1.30bn. The increase has an issue price of 107.719% (accrued interest of 2.250%) and is priced to yield 3.375%. This equates to a spread of 46.25 basis points over the ACGB 4.75% June 2016. 

Both tranches settle on September 24, 2013. 

The joint lead-managers for this dual-tranche offering are Citi and Westpac.

The new benchmark bonds were launched with an initial target aggregate size of AUD800 million, but demand grew quickly to allow for a total size of AUD1.05 billion for both tranches. This is the largest aggregate size for a supranational in this market in 2013. 

The bonds were distributed globally and placed with institutional investors in Australia, Asia, Europe and the Middle East. The investor mix included central banks and other official institutions, fund managers and banks/corporates. Investors remain attracted to the global recognition of the World Bank name and the strength of its credit, as well as the continued strategic approach of the World Bank in the Kangaroo market. 

“We are very pleased with the strong reception for our Australian dollar bonds from investors around the world. We have added the new floating rate note to our menu of Australian benchmark products, to respond to increased investor demand for this type of instrument. We look forward to continuing to meet investors’ needs in this market,” said Andrea Dore, Lead Financial Officer, Capital Markets, World Bank.

Joint lead manager quotes:

"Again, the World Bank has demonstrated its place as the premier issuer in the market with this dual-tranche offering, by securing an impressive aggregate volume and achieving a solid global distribution across both tranches. Given the amount of supply in recent weeks this was a great outcome” said James Arnold, Director, Syndicate at Citi.

"The number and quality of investors in FRN format for the World Bank is particularly pleasing. We have seen in recent semi government FRN issuance particular domestic investors, the World Bank was able to tap into this and other offshore investors,” said Peter Dalton, Head of Syndicate 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.

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 on bonds for investors is available on the World Bank Treasury website: (