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World Bank Prices Australian Dollar 550 Million with 5-year Benchmark

Washington, DC, March 4, 2015 - The World Bank (International Bank for Reconstruction and Development, rated Aaa/AAA) today priced a new 5-year benchmark Australian dollar (AUD) transaction.

The AUD 550 million 5-year fixed rate notes are due on March 12, 2020 and have a semi-annual coupon of 2.5% p.a., and a reissue price of 99.755%. This equates to a spread of 48 basis points over the ACGB 4.5% due April 2020. Settlement date is March 12, 2015.

The joint lead-managers for the transaction are Deutsche Bank, RBC Capital Markets and TD Securities (London).

“We are pleased to be able to add another point on our Australian dollar curve and happy with the level of investor participation in this trade. The order book was of high-quality with a well-balanced investor distribution by region and investor type,” said Andrea Dore, Lead Financial Officer, Capital Markets, World Bank.

The notes were distributed to a broad range of investors in Asia 31% (including Japan), Australia 30%, Europe 35%, Middle East plus Africa 3%, and the Americas 1%. 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.

World Bank AUD 550 million 2.5% due March 2020
By Investor Type
By Geography

 



Transaction Summary
Issuer
World Bank (International Bank for Reconstruction and Development, IBRD)
Issuer rating
Aaa/AAA
Amount
AUD 550 million
Settlement date
March 12, 2015
Maturity date
March 12, 2020
Issue price
99.755%
Coupon 2.5% payable semi-annually in arrears
Denomination AUD 1,000 - Minimum consideration for investors in Australia is AUD 500,000
Listing Luxembourg Stock Exchange
Clearing system Austraclear / Euroclear / Clearstream
Joint lead managers Deutsche Bank, RBC CM and TD Securities (London)
ISIN AU3CB0228104

Joint Lead Manager Quotes:

“This trade is further evidence of the in-depth knowledge and understanding that the World Bank has of the Kangaroo market. The pricing of this transaction was faultless. The result was a very granular and diverse book comprising of both domestic and offshore accounts across the investor universe. TD Securities was very pleased to be included in this transaction,” said Tom Irving, Managing Director, Head of Asian Syndicate, TD Securities.

“Another very successful AUD transaction for the World Bank. The broad reach of investors both by
geography and investor type further highlights the standing of the World Bank as a premier borrower in
the AUD SSA market and reflects the continued access the World Bank will have to the AUD Kangaroo
market going forward,”
said Craig Johnston, Australian Dollar Syndicate, Deutsche Bank AG Sydney.

“World Bank once again demonstrated why the AUD market remains a strategic market for funding diversification for the issuer. The transaction demonstrated broad investor participation in terms of geography and type for this highly sought-after name, allowing the transactions to be upsized. The scarcity of World Bank issuance in AUD in this sector of the curve has enabled the issuer to successfully combine volume and price targets to meet their funding objectives,” said Daniel Chandler, Director, Debt Capital Markets, Asia-Pacific at RBC Capital Markets.

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 intended 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 sustainable development activities and achieve a positive impact. Information for investors is available on the World Bank Treasury website: (http://treasury.worldbank.org/capitalmarkets).

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