World Bank Launches 2025 with AUD 1.75 Billion Sustainable Development Bond in Kangaroo Market

Washington DC,  January 6, 2025: The World Bank (International Bank for Reconstruction and Development, IBRD, rated Aaa/AAA) has successfully issued its first benchmark bond for 2025—a landmark Australian dollar (AUD) 1.75 billion 5-year Sustainable Development Bond. Maturing on January 10, 2030, the bond underscores the World Bank’s ongoing commitment to funding green and social initiatives in its member countries. The issuance garnered exceptional interest from more than 70 investors worldwide, resulting in a strong final orderbook exceeding AUD 3.1 billion. The bond carries a fixed coupon rate of 4.35% per annum, equating to a spread of +42 basis points over the Australian government bond maturing in November 2029. The transaction was jointly managed by four lead managers: ANZ, Commonwealth Bank of Australia, Nomura, and RBC Capital Markets. This issuance further cements the World Bank’s reputation as a leader in the Kangaroo bond market, offering attractive investment opportunities aligned with its sustainable development mission.

Global Investor Confidence Drives Success

Jorge Familiar, Vice President and Treasurer of the World Bank, highlighted the significance of the transaction: “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.” Strong participation from Australian and international investors played a pivotal role in the transaction’s success.

Proceeds from this issuance will be allocated to financing green and social projects across IBRD member countries, focusing on sustainable development, poverty alleviation, and climate action. The robust demand underscores investor confidence in the World Bank’s financial stability and mission-driven approach to global progress. This transaction highlights the World Bank’s critical role in channeling private capital toward sustainable investments, reinforcing its leadership position in the SSA market as 2025 unfolds.