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World Bank Adds to Australian Dollar Yield Curve with New 5-year Benchmark

Washington DC, January 15, 2014 - The World Bank (International Bank for Reconstruction and Development, rated Aaa/AAA) today priced a new 5-year benchmark Australian dollar transaction.

The AUD 500 million 5-year fixed rate notes are due on January 23, 2019 and have a semi-annual coupon of 3.75%, a semi-annual yield of 3.91%, and a reoffer price of 99.28%. This equates to a spread of 41.75 basis points over the ACGB 5.25% due March 2019. Settlement date is January 23, 2014.

The joint lead-managers for the transaction are ANZ, RBC Capital Markets and TD Securities.

The notes were distributed to a broad range of investors in Asia 51% (including Japan), Australia 30%, Europe 14% and North America 5%. Investors remain attracted by the rarity of the issuer in this market, the global recognition of the name, the strength of the credit, and the liquidity afforded to investors by a new point in the World Bank AUD yield curve.

“We are pleased with the good size of this transaction and the strong orderbook particularly in the context of the current market.  We are grateful for the continued positive feedback and support we received from investors and our partners," said Doris Herrera-Pol, Director and Global Head of Capital Markets at the World Bank.

“The World Bank continues its strong track record of issuance in the Kangaroo market with the latest bond issue garnering a strong orderbook with a diverse mix of high quality domestic and offshore investors. We would expect ongoing appetite for this issuer in the Australian Dollar market given their continued responsiveness to investor appetite," said Apoorva Tandon, Director, Syndicate at ANZ.

"The Kangaroo market remains an important source of funding for many global issuers and the World Bank continues to lend its support to the market’s development. As one of the largest issuers in the Kangaroo market, the World Bank remains focused in offering diversification and rarity to Australian dollar investors,” said Enrico Massi, Managing Director, Head of Debt Capital Markets - Asia Pacific at RBC Capital Markets.

“Transaction sizes in the SSA kangaroo market have been lower in the past 12 months. It is testament to the strength of the IBRD name in A$ market that they have been able to place over A$1.5b in the past 6 months and see their lines continue to perform in the secondary market,” said Tom Irving, Managing Director, Head of Asian Syndicate – TD Securities.


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 expected to qualify as eligible collateral for repurchase agreements for the Reserve Bank of Australia’s open market operations.


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 operates as a global development cooperative owned by 188 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 overriding goal is to achieve major, sustainable improvements in standards of living worldwide. It has been issuing bonds in the international capital markets for over 60 years to fund its activities. Information on bonds for investors is available on the World Bank Treasury website: (www.worldbank.org/debtsecurities).

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