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PRESS RELEASE January 6, 2016

World Bank Opens the Kangaroo Market with a Successful AUD 550 Million 5-Year Global Bond

Washington DC, January 6, 2016 - The World Bank (International Bank for Reconstruction and Development, rated Aaa/AAA) today priced a new 5-year Australian dollar (AUD) 550 million fixed-rate global bond. This bond opens the Kangaroo market for the year and is also the World Bank’s first global benchmark transaction for 2016.

The AUD 550 million bond is due on January 13, 2021 and has a semi-annual coupon of 2.8% p.a. with an issue price of 99.907%. This equates to a spread of 59 basis points over the ACGB 5.75% due May 2021. Settlement date is January 13, 2016.

The joint lead-managers for the transaction are Deutsche Bank, Nomura and TD Securities (London).

“It is a great pleasure for us to start the New Year off by issuing the market's first Australian dollar global benchmark by a supranational issuer. Providing investors in strategic markets like the Australian Dollar market with safe investments that have a social purpose will continue to be a key focus of the World Bank Treasury,” said Arunma Oteh, Vice President and Treasurer, World Bank.

The notes were distributed to a broad range of investors in Asia 35% (including Japan), Australia 35%, Europe 29% and the Americas 1%. They were purchased by asset managers (51%), banks/corporates (26%), central banks/official institutions (22%) and insurance and pension funds (1%). Investors remain attracted by the rarity of the World Bank in this market, the World Bank’s sustainable development purpose and 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 550 million

Settlement date

January 13, 2016

Maturity date

January 13, 2021

Issue price



2.8% p.a. payable semi-annually in arrears


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


Luxembourg Stock Exchange

Clearing systems:


Joint lead managers

Deutsche Bank, Nomura and TD Securities (London)



Joint Lead Manager Quotes:

"World Bank has successfully opened the year for Kangaroo SSAs with another broadly placed primary transaction. Following a sustained period of volatility for SSAs in the second half of 2015 and limited issuance opportunities, it was very pleasing to be able to bring the World Bank to the market to reopen Kangaroo issuance for 2016. In a challenging market, World Bank’s depth of demand across a broad range of investor types was highlighted in the participation in this deal. Deutsche Bank is very proud to be part of such an important transaction,” said Craig Johnston, Vice President, Debt Capital Markets, Syndicate, Deutsche Bank

"After a long hiatus of supply in the Kangaroo market it is a testament to the World Bank’s diverse following that we were able to price a A$550m transaction with an oversubscribed orderbook. Even more pleasing is the granularity and geographic dispersion of the investor base. Nomura was extremely pleased to be involved in the first bond issue of 2016 for the World Bank," said Oliver Holt, Director, Vice President, Nomura.

"This was an important transaction for the Kangaroo market and the World Bank approached it in a flawless manner. Investors have been looking for a fairly priced offering from a premier name, and it is exactly what they got. The result was a large, granular book comprising of both domestic and offshore accounts across the investor spectrum. TD Securities appreciated the opportunity of bringing World Bank back to the Kangaroo market,” said Tom Irving, Managing Director, Head of Asian Syndicate, 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 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 and achieve a positive impact. Information on bonds for investors is available on the World Bank Treasury website: