The World Bank has issued an AUD 1.75 billion (USD 1.09 billion) 5-year Sustainable Development Bond, its first benchmark bond of 2025. Carrying a fixed coupon rate of 4.35% per annum and priced at a spread of +42 basis points over the Australian government bond maturing in November 2029, the bond will mature on 10 January, 2030.
It has drawn exceptional interest from more than 70 investors worldwide, with an orderbook exceeding AUD 3.1 billion (USD 1.9 billion). The transaction, jointly managed by ANZ, Commonwealth Bank of Australia, Nomura, and RBC Capital Markets, highlights the World Bank’s commitment to funding green and social initiatives in member countries while strengthening its leadership in the Kangaroo bond market.
Jorge Familiar, Vice President and Treasurer of the World Bank, expressed his satisfaction with the issuance, stating, “We are thrilled to begin 2025 with a successful issuance in the Australian dollar market—an important start to the World Bank’s funding activities this year. The AUD market remains a core platform for global investors, and this benchmark offers them a meaningful way to support the World Bank’s mission to eradicate extreme poverty and promote shared prosperity on a sustainable planet through high-quality, liquid investments.”
Proceeds from the bond will finance a wide range of green and social projects across IBRD member countries, focusing on sustainable development, poverty alleviation, and climate action. Strong participation from both Australian and international investors underscores the confidence in the World Bank’s financial stability and mission-driven investment approach. This transaction not only supports critical global development goals but also reinforces the World Bank’s position as a leader in the sovereign, supranational, and agency (SSA) market.
