Washington D.C.—The World Bank (International Bank for Reconstruction and Development, rated Aaa/AAA) today priced a new 5-year AUD 1.3 billion Kangaroo bond, representing the largest Australian dollar SSA (supranationals, sovereigns and agencies) bond priced in nearly a decade. It also marks the World Bank’s return to the Kangaroo market this year. The investor base was decidedly global, with just over half in Australia and over one-third in Asia (including Japan). The joint lead-managers for the transaction are ANZ, J.P. Morgan and Nomura.
Today’s transaction highlights an active six months in the Kangaroo market for the World Bank. In August, the World bank issued the world’s first bond using the blockchain technology, Bond-i, in AUD with Australian partners. In November, the World Bank capped off the week commemorating the 10th anniversary of the first green bond by issuing a 7-year AUD 300 million Kangaroo bond entirely to investors who follow environmentally and socially-focused investment principles.
Jingdong Hua, Vice President & Treasurer, World Bank said, “The record volume of today’s Kangaroo bond demonstrates a deepening partnership with Australian investors. We are very pleased with the size and quality of this the order book, and we thank our bank partners and the many investors for their continued partnership and support of the World Bank’s development mandate.”
Paul White, Global Head of Capital Markets, ANZ said, “The World Bank continues to demonstrate why they are the premier supranational issuer in the Australian dollar market given the order book, deal size, final pricing and depth of account participation observed for this transaction. After being absent from the 5-year part of the curve since September 2017, they were able to capitalize on pent-up demand for their name while also accessing a window of elevated liquidity. The support from the domestic investor base ultimately helped World Bank print the largest supranational 5-year trade since 2010. It was a great pleasure for ANZ to be a part of this highly successful offering.”
Keith Price, Managing Director, Head of SSA Syndicate and Origination, J.P. Morgan said, “Today’s transaction is an outstanding result for the World Bank who timed it beautifully to print the largest SSA Kangaroo since February 2010. The final size and quality of the orderbook reaffirms the strong sponsorship the World Bank holds amongst investors globally in Australian Dollars. J.P. Morgan was delighted to have played a role this landmark deal.”
Morven Jones, Head of EMEA DCM, Nomura said, “At AUD 1.3 billion, the World Bank’s new five-year Kangaroo transaction has achieved record-breaking size being the biggest new issue from the SSA sector for nine years. The timing was spot-on and the strong market reception again reflects the World Bank’s status as a leading issuer in the Kangaroo market and the ongoing support it enjoys both from the domestic Australian investor base and from the global investor community. The issue is a testament to the World Bank’s credit standing, and the importance that investors attach to the sustainable development projects and programmes that these trades ultimately help fund.”
The 5-year AUD 1.3 billion bond offers a coupon of 2.20% per annum with a February 27, 2024 maturity and has an issue price of 99.765% to yield 2.25% per annum. This equates to a spread of 52.25 basis points over the 2.75% Australian Commonwealth Government Benchmark (ACGB) due April 2024.
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 intended to qualify as eligible collateral for repurchase agreements for the Reserve Bank of Australia’s open market operations.
By Investor Type
Asia (excluding Japan)
Official Institutions/Central Banks
Summary Terms and Conditions*
World Bank (International Bank for Reconstruction and Development, IBRD)
AUD 1.3 billion
February 27, 2019
February 27, 2024
2.20% p.a. payable semi-annually in arrear
Coupon payment dates
Each August 27 and February 27 until the maturity date
AUD 1,000. Minimum consideration payable when offered or sold in Australia is AUD 500,000
Luxembourg Stock Exchange
Austraclear / Euroclear / Clearstream
Joint lead managers
ANZ, J.P. Morgan, and Nomura
* This press release is not an offer for sale of bonds of the International Bank for Reconstruction and Development ("IBRD"), also known in the capital markets as "World Bank". Any offering of the bonds will be made only by means of a prospectus containing detailed information that will made available through ANZ, J.P. Morgan and Nomura, and is subject to restrictions under the laws of several countries. Securities may not be offered or sold except in compliance with all such laws.
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 189 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 has two main goals: to end extreme poverty and promote shared prosperity. It 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. It has been issuing sustainable development bonds in the international capital markets for over 70 years to fund its activities that achieve a positive impact. Information on World Bank bonds for investors is available on the World Bank Treasury website: www.worldbank.org/debtsecurities.