WASHINGTON, January 3, 2024 – The World Bank (International Bank for Reconstruction and Development, IBRD rated Aaa/AAA) has priced its first benchmark of 2024 – an Australian dollar 2 billion 5-year bond due January 10, 2029.
The transaction attracted over 50 orders totaling more than AUD 2.4 billion from investors drawn to IBRD’s high credit quality while supporting the World Bank’s mission. World Bank Sustainable Development Bonds support the financing of green and social projects, programs and activities in IBRD member countries.
The 4.30% p.a. fixed-rate bond equates to a spread of +60.4 basis points over the Australian government bond due November 2028. The joint-lead managers for the transaction are Deutsche Bank, J.P. Morgan, Nomura International plc and RBC Capital Markets.
“This transaction was a remarkable launch to our funding program for the new year,” said Jorge Familiar, Vice President and Treasurer, World Bank. “The Australian dollar market is important to provide investment opportunities to a broad set of globally diverse investors – a cornerstone of our program which allows a large number of investors to participate and support the institution’s mission to end extreme poverty and boost prosperity on a livable planet.”
By Investor Type
Central Banks / Official Institutions
Asset Managers/Insurance/Pension Funds
Joint Lead Manager Quotes
“A fantastic transaction to kick of the 2024 calendar year with the World Bank issuing an AUD 2 billion new 5-year transaction. The transaction was very well supported by both a diverse group of investor jurisdictions and types which highlights the World Bank’s ability to issue across all markets. Deutsche Bank is very proud to have worked on this landmark transaction and we look forward to working together in the future,” said Craig Johnston, Head of AUD Debt Capital Markets (DCM) Syndicate, Deutsche Bank Sydney.
“Congratulations to the World Bank team for their record-breaking start to 2024 with this new 5-year Sustainable Development Bond. This AUD 2 billion transaction is an incredible result and demonstrates the exceptional investor following that the World Bank team has developed over many years of issuing in the Kangaroo market. The J.P. Morgan team is proud to have worked with the World Bank on their opening transaction for the year,” said Sarah Lovedee, Head of Supranational DCM, J.P. Morgan.
“The World Bank have set the tone in global bond markets to start 2024. This transaction marks the first benchmark transaction across all currencies, for all issuers, achieving a record outcome. Achieving a transaction size of AUD 2 billion, the largest AUD Sovereign, Supranational and Agency (SSA) transaction ever recorded, has drawn a collection of new investors to the market overall and helped drive the growth and maturity of the AUD market for offshore issuers. It has been Nomura's pleasure to continue our partnership with the World Bank in the Kangaroo market,” said Oliver Holt, Head of Debt Syndicate and Origination Asia ex Japan, Nomura.
“What a way to open the Australian dollar market! Yet again the World Bank is setting the standard for what is possible to achieve in the SSA Kangaroo market. RBC is proud to have acted as a Joint Lead Manager for the World Bank in what is the largest SSA Kangaroo bond on record and would like to congratulate the World Bank for executing an extremely well-placed transaction and paving the way for the sector in 2024,” said Harald Eikeland, Director, Head of APAC Syndicate at RBC Capital Markets.
World Bank (International Bank for Reconstruction and Development, IBRD)
AUD 2 billion
January 10, 2024
Minimum denominations and minimum holding:
AUD 1,000. The minimum consideration payable when issued in Australia: AUD 500,000
4.30% p.a. payable semi-annually
January 10, 2029
Luxembourg Stock Exchange
Austraclear / Euroclear / Clearstream
Joint lead managers:
Deutsche Bank, JP Morgan, Nomura International plc, RBC Capital Markets
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 is the original member of the World Bank Group and operates as a global development cooperative owned by 189 nations. The World Bank provides loans, guarantees, risk management products, and advisory services to middle-income and other creditworthy countries to support the Sustainable Development Goals and to end extreme poverty and promote shared prosperity. It also provides leadership to coordinate regional and global responses to development challenges. The World Bank has been issuing sustainable development bonds in the international capital markets for over 70 years to fund programs and activities that achieve a positive impact. More information on World Bank bonds is available at www.worldbank.org/debtsecurities.
World Bank bonds support the financing of programs that further the Sustainable Development Goals (SDGs). World Bank bonds are aligned with the Sustainability Bond Guidelines published by the International Capital Market Association and as such support the financing of a combination of green and social, i.e., “sustainable development” projects, programs and activities in IBRD member countries as described in the World Bank Sustainable Development Bond Framework. The World Bank is also a member of the Executive Committee of the Green Bond, Social Bond, and Sustainability Bond Principles. A key priority for the World Bank’s capital markets’ engagement is building strategic partnerships with investors to promote the importance of private sector financing in sustainable development. The World Bank’s Sustainable Development Bond Impact Report describes how the World Bank engages with investors on the SDGs and raises awareness for specific development challenges.
This press release is not an offer for sale of securities of the International Bank for Reconstruction and Development ("IBRD"), also known in the capital markets as "World Bank". Any offering of World Bank securities will take place solely on the basis of the relevant offering documentation including, but not limited to, the prospectus, term sheet and/or final terms, as applicable, prepared by the World Bank or on behalf of the World Bank, and is subject to restrictions under the laws of several countries, including under the laws of New South Wales. World Bank securities may not be offered or sold except in compliance with all such laws. The World Bank Sustainable Development Bond Framework, the World Bank’s Sustainable Development Bond Impact Report, and the information set forth therein are not a part of, or incorporated by reference into, the offering documentation.
Net proceeds of the securities described herein are not committed or earmarked for lending to, or financing of, any particular projects or programs. Payments on the securities described herein are not funded by any particular project or program.
Investor Relations and Sustainable Finance
World Bank Treasury