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PRESS RELEASE July 22, 2015

World Bank Prices Australian Dollar 700 Million Tap of 12 March 2020 Kangaroo Bond

Washington, DC, July 22, 2015 - The World Bank (International Bank for Reconstruction and Development, rated Aaa/AAA) today priced an Australian dollar (AUD) 700 million tap to the existing 2.5% March 2020 fixed-rate global bond to take the total outstanding to AUD 1.25 billion.

The AUD 700 million increase of the fixed rate notes are due on March 12, 2020 and have a semi-annual coupon of 2.5% p.a., and an issue price of 99.124%. This equates to a spread of 54 basis points over the ACGB 4.5% due April 2020. Settlement date is July 29, 2015.

The joint lead-managers for the transaction are Commonwealth Bank of Australia, RBC Capital Markets and TD Securities (London).

“We are extremely pleased with the results of this transaction particularly with the high level of domestic investors' participation.  We would like to thank those domestic investors and all the other investors who purchased this bond. Their participation in this transaction is very important because it helps support the World Bank's global development mandate," said Andrea Dore, Lead Financial Officer, Capital Markets, World Bank.

The notes were distributed to a broad range of investors in Asia 19% (including Japan), Australia 72%, and Europe 9%. Investors remain attracted by the rarity of the issuer in this market, the global recognition of the name, the strength of the credit, and the liquidity afforded to investors.

Transaction Summary


World Bank (International Bank for Reconstruction and Development, IBRD)

Issuer rating



AUD 700 million

Settlement date

July 29, 2015

Maturity date

March 12, 2020

Issue price



2.5% payable semi-annually in arrears


AUD 1,000 - Minimum consideration for investors in Australia is AUD 500,000


Luxembourg Stock Exchange

Clearing system

Austraclear / Euroclear / Clearstream

Joint lead managers

CBA, RBC CM and TD Securities (London)



Joint Lead Manager Quotes:

“World Bank has proved again that they have a huge following in AUD with another oversubscribed deal. It was particularly pleasing to see such a broad range of domestic investors in this book. TD Securities is delighted to be a part of such a successful transaction,” said Tom Irving, Managing Director, Head of Asian Syndicate, TD Securities.

“World Bank seized the issuance window with this well-timed transaction and were commensurately rewarded with a well-placed AUD 700 million increase, taking the total amount on issue for the line to AUD 1.25 billion. Particularly pleasing was the take up from domestic investors who accounted for over seventy percent of the allocated orderbook, a participation rate which we’ve not seen in a Supranational transaction for quite some time,” said James Hammermaster, Director, Debt Capital Markets, Commonwealth Bank of Australia Sydney.

“Following a period of volatility with limited supply, World Bank returned to the benchmark AUD market with a well-timed, upsized transaction that resonated with the domestic investor base in particular for this highly sought-after and rare name. Once again the World Bank has been able to successfully combine volume and price targets to meet their funding objectives with the end result underlining why the AUD market remains a strategic market for funding diversification for them,” said Daniel Chandler, Director, Debt Capital Markets, Asia-Pacific at RBC Capital Markets.

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 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 and the original member of the World Bank Group. 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 World Bank Group has two main goals: to end extreme poverty and promote shared prosperity. The World Bank (IBRD) seeks to achieve them primarily by providing loans, risk management products, and expertise on development-related disciplines to its borrowing member government clients in middle-income countries and other creditworthy countries, and by coordinating responses to regional and global challenges. The World Bank has been issuing sustainable development bonds in the international capital markets for over 60 years to fund its activities that achieve a positive impact. Information on bonds for investors is available on the World Bank Treasury website: www.worldbank.org/debtsecurities.