The World Bank has initiated its 2025 funding program with a successful launch of an Australian dollar 1.75 billion five-year bond. Due on January 10, 2030, the bond is part of the bank's effort to finance green and social projects across its member countries.
This transaction saw over 70 orders totaling more than AUD 3.1 billion, underscoring the World Bank's credit quality and mission support. The bond offers a fixed rate of 4.35% per annum and a spread of +42 basis points over the Australian government bond due November 2029. ANZ, Commonwealth Bank of Australia, Nomura, and RBC were joint lead managers for this issue.
Jorge Familiar, Vice President and Treasurer at the World Bank, commented on the transaction: “We are pleased to kick off 2025 with a transaction in the Australian dollar market again – this is an excellent start to the World Bank’s funding program for the new year.” He added that it provides investors an opportunity to contribute to ending extreme poverty and promoting shared prosperity.
The investor distribution was diverse both geographically and by type. By geography, Asia accounted for 42%, Australia for 34%, while EMEA and Americas made up the remaining 24%. In terms of investor type, banks or bank treasuries comprised 48%, asset managers/insurance/pension funds constituted 33%, with central banks or official institutions at 19%.
Representatives from joint lead managers also expressed satisfaction with the transaction. Brenton Smith from ANZ noted that it underscores "the robust and diverse investor base" cultivated by the World Bank in the Kangaroo market. Nikolaus Romuld from Commonwealth Bank of Australia highlighted domestic engagement in the SSA sector at year's start as particularly pleasing.
RBC Capital Markets' Harald Eikeland emphasized another impressive return to Australia's market by stating: "As has almost become customary," while Oliver Holt from Nomura remarked on reopening global bond markets with significant participation.
The issued bonds will be listed on Luxembourg Stock Exchange and cleared through Austraclear, Euroclear, and Clearstream systems.
The World Bank continues its longstanding practice of issuing sustainable development bonds since its founding in 1944. These bonds align with Sustainability Bond Guidelines supporting various green and social projects under their Sustainable Development Bond Framework.