World Bank Kicks Off 2025 Funding Program with A$1.75 Billion Sustainable Development Bond in Kangaroo Market

Bonds

January 03, 2025 —The World Bank (International Bank for Reconstruction and Development, IBRD) has successfully launched its first benchmark bond issuance of 2025, raising A$1.75 billion (US$1.2 billion) through a 5-year Sustainable Development Bond.

This highly sought-after offering attracted significant investor interest, receiving over 70 orders totaling more than A$3.1 billion. The strong demand reflects both the World Bank's top-tier credit rating (Aaa/AAA) and its commitment to supporting green and social projects in its member countries.

The bond carries a fixed interest rate of 4.35% per annum, payable semi-annually, and matures on January 10, 2030. The issuance was priced competitively at a spread of +42 basis points over the Australian government bond maturing in November 2029. This demonstrates the confidence investors have in the World Bank's financial stability and its mission to eradicate extreme poverty and promote shared prosperity.

The diverse investor base participating in the bond offering included:

Commenting on the successful issuance, Jorge Familiar, Vice President and Treasurer of the World Bank, stated, "This is an excellent start to the World Bank's funding program for the new year. The Australian dollar market is a core market for a global investor base, and this benchmark provides them with an opportunity to contribute to our mission through a liquid, high-quality investment."

The joint lead managers for the transaction, ANZ, Commonwealth Bank of Australia, Nomura, and RBC Capital Markets, all expressed their satisfaction with the outcome. They highlighted the robust investor demand, diverse participation, and the World Bank's continued commitment to the Australian dollar market (known as the Kangaroo market).

This issuance sets a strong benchmark for the Kangaroo Sovereign, Supranational and Agency (SSA) market in 2025, paving the way for further successful bond offerings in the coming year.

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