Strong International Demand for World Bank’s Australian Dollar Offering Leads to Record AUD 1.3 billion Tap Size
WASHINGTON – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) priced a reopening of its 4.40% Australian Dollar Sustainable Development Bond due January 13, 2028, bringing the total size of the bond to AUD 2.8 billion. The Sustainable Development Bond increase raised an additional AUD 1.3 billion to support the World Bank’s efforts to eradicate poverty on a livable planet and was a record tap size for a supranational issuer in that market.
The joint-lead managers for the transaction are TD Securities and Nomura International plc.
“This tap follows our successful AUD bond earlier this year, and once again offers investors currency diversification in a safe, liquid product that supports positive impact. It emphasizes our global market access, flexibility and ongoing commitment to investor needs,” said Jorge Familiar, Vice President and Treasurer, World Bank. “We are thankful for our dedicated Australian dollar investors who support the World Bank’s sustainable development mandate.”
Investor Breakdown by Type
| Central Banks/Official Institutions | 54% |
| Banks/Bank Treasuries/Trading | 36% |
| Asset Managers/Pension Funds | 10% |
Investor Breakdown by Geography
| Asia | 86% |
| Australia | 11% |
| Europe / Middle East/ Africa (EMEA) | 3% |
Lead Manager Quotes
“We congratulate the World Bank on another fantastic print in the Australian dollar market. With an issue size of AUD 1.3 billion, this is the largest Sovereign, Supranational and Agency (SSA) Australian dollar bond increase ever and is testament to the World Bank’s following in the AUD market from global investors. This bond is now the World Bank’s largest outstanding AUD line and will serve as an important liquid reference point for the World Bank AUD curve as well as for the broader SSA market. TD is delighted to have been involved in this transaction,” Matt Jaconelli, Director, TD Securities.
“A huge result for the World Bank today with a AUD 1.3 billion increase to their January 2028 AUD Sustainable Development Bond. A commanding decision to opt for an intraday syndication was rewarded with the largest ever book and indeed print of any SSA Australian dollar tap. The success of the increase is a testament to the World Bank’s global market focus, as well as the broad investor support for the World Bank’s mandate and credit quality. Nomura is delighted to be a part of the transaction.” Mark Yeomans, Managing Director-Debt Capital Market, Nomura International Plc.
Transaction Summary
| Issuer: | World Bank (International Bank for Reconstruction and Development, IBRD) |
| Issuer rating: | Aaa/AAA |
| Amount: | AUD 1.3 billion (total outstanding AUD 2.8 billion) |
| Settlement date: | February 15, 2024 |
| Minimum denominations and minimum holding: | AUD 1,000. The minimum consideration payable when issued in Australia: AUD 500,000 |
| Coupon: | 4.40% p.a. payable semi-annually |
| Maturity date: | January 13, 2028 |
| Re-offer price: | 100.594% |
| Re-offer yield: | 4.2325% semi-annual |
| Listing: | Luxembourg Stock Exchange |
| Clearing systems: | Austraclear / Euroclear / Clearstream |
| ISIN: | AU3CB0295509 |
| Joint lead managers: | Nomura International plc., TD Securities |