World Bank 2 Billion Australian Dollar Global Bond Sets the Stage for Strong Start to 2024

WASHINGTON – 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.”

Investor Distribution

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.

Transaction Summary