WASHINGTON, January 3, 2025 – The World Bank (International Bank for Reconstruction and Development, IBRD, rated Aaa/AAA) has priced its first benchmark of 2025 – an Australian dollar 1.75 billion 5-year bond due January 10, 2030.
The transaction received over 70 orders, totaling more than AUD 3.1 billion, due to IBRD’s high credit quality and support for the World Bank’s mission. These bonds support the financing of green and social projects in IBRD member countries.
The 4.35% p.a. fixed-rate bond equates to a spread of +42 basis points over the Australian government bond due November 2029. The joint-lead managers for the transaction are ANZ, Commonwealth Bank of Australia, Nomura, and RBC.
“We are pleased to kick off 2025 with a transaction in the Australian dollar market again – this is an excellent start to the World Bank’s funding program for the new year,” said Jorge Familiar, Vice President and Treasurer, World Bank. “This is a core market for a diverse group of global investors and this benchmark provides them an opportunity to contribute to the World Bank’s mission to end extreme poverty and boost shared prosperity on a livable planet through a liquid, high quality investment.”
Investor Distribution
| By Geography | By Investor Type | ||
| Asia | 42% | Banks/Bank Treasuries | 48% |
| Australia | 34% | Asset Managers/Insurance/Pension Funds | 33% |
| EMEA and Americas | 24% | Central Banks / Official Institutions | 19% |
Joint Lead Manager Quotes
“ANZ is pleased to have once again partnered with the World Bank on this highly successful 5-year Sustainable Development Bond. The impressive AUD 3.1 billion final orderbook, and the World Bank’s ability to tighten the final price, underscores the robust and diverse investor base that they have cultivated in the Kangaroo market. The AUD 1.75 billion final transaction has set a solid benchmark for the Kangaroo Sovereign, Supranational and Agency (SSA) market for 2025,” said Brenton Smith Director Debt Syndicate, ANZ.
“Congratulations to the World Bank on opening the Australian public syndication market for 2025 with an outstanding AUD 1.75 billion Sustainable Development Bond. The transaction attracted diverse investors from domestic and international buyers, and we were particularly pleased to see the Australian investor base engaging meaningfully in the SSA sector at the start of the year. CBA is delighted to have been involved,” said Nikolaus Romuld Head of Bond Syndicate and High Grade Origination, Commonwealth Bank of Australia.
“Another impressive return to the Kangaroo market from the World Bank. As has almost become customary, the World Bank opened the Kangaroo market for 2025 in an impressive fashion with a diverse range of investors supporting this AUD 1.75 billion transaction. The World Bank’s commitment to the Australian dollar market has once again bore fruit,” said Harald Eikeland Head of APAC Syndicate, RBC Capital Markets.
“Once again, the World Bank have reopened the world’s bond markets for 2025 with a sizeable Kangaroo benchmark. The deal saw a record number of investors participate, and to my knowledge drew more support than any other SSA issuer in this market. Nomura was delighted to be part of this 2025 market opening transaction,” said Oliver Holt, Head of AeJ DCM and Syndicate.
Transaction Summary
| Issuer: | World Bank (International Bank for Reconstruction and Development, IBRD) |
| Issuer rating: | Aaa/AAA |
| Amount: | AUD 1.75 billion |
| Settlement date: | January 10, 2025 |
| Minimum denominations and minimum holding: | AUD 1,000. The minimum consideration payable when offered or sold in Australia: AUD 500,000 |
| Coupon: | 4.35% p.a. payable semi-annually |
| Maturity date: | January 10, 2030 |
| Re-offer price: | 99.978% |
| Re-offer yield: | 4.355%% (semi-annual) |
| Listing: | Luxembourg Stock Exchange |
| Clearing systems: | Austraclear / Euroclear / Clearstream |
| ISIN: | AU3CB0317063 |
| Joint lead managers: | ANZ, Commonwealth Bank of Australia, Nomura and RBC |
