Washington, DC, January 5, 2017 – The World Bank (International Bank for Reconstruction and Development, rated Aaa/AAA) today priced a new 5-year Australian dollar (AUD) 600 million fixed-rate global bond. This bond opens World Bank’s global benchmark transactions for 2017.
The AUD 600 million bond is due on January 12, 2022 and has a semi-annual coupon of 2.80% p.a. with an issue price of 99.954%. This equates to a spread of 52.75 basis points over the Australian Government Bond (ACGB) due July 2022. Settlement date is January 12, 2017.
The joint lead-managers for the transaction are ANZ, Nomura and TD Securities.
“We are delighted to herald the New Year with such a successful transaction. It is the largest 5-year benchmark Kangaroo bond issue by a supranational and agency issuer since our last transaction in July last year. The broad interest from investors around the globe shows they appreciate this high-quality, liquid offering that supports sustainable development,” said Arunma Oteh, Vice President and Treasurer, World Bank.
The notes were distributed to a broad range of investors in Australia (50%), Asia - excluding Japan - (28%), Japan (15%), the Americas (5%) and Europe (2%). They were purchased by asset managers (40%), banks/corporates (34%), and central banks/official institutions (26%). Investors remain attracted by the rarity of the World Bank in this market, the World Bank’s sustainable development purpose and global recognition of the name, the strength of the credit, and the liquidity afforded to investors.
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