The World Bank has successfully launched a AUD 1.75 billion (approximately USD 1.088 billion) Sustainable Development Bond for 2025, marking the beginning of its funding program for the year. The five-year bond, maturing on January 10, 2030, is priced with a fixed annual rate of 4.35%, offering a strong investment opportunity to global investors while supporting green and social projects across International Bank for Reconstruction and Development (IBRD) member countries.
The bond attracted robust demand, surpassing AUD 3.1 billion in orders, showcasing the World Bank’s significant investor base and the appeal of sustainability-focused investments. The orders came from over 70 investors across various regions, including Asia (42%), Australia (34%), and the EMEA/Americas (24%).
Investor participation was diverse, with 48% of the demand coming from banks and bank treasuries, 33% from asset managers, insurance companies, and pension funds, and 19% from central banks and official institutions.
Jorge Familiar, Vice President and Treasurer of the World Bank, expressed satisfaction with the bond issuance, highlighting it as an excellent start to the 2025 funding program and a solid step towards the World Bank’s mission of promoting sustainable development and a livable planet.
The strong performance of this bond underscores the World Bank’s continued prominence in the Australian dollar bond market (the “Kangaroo market”) and its ability to attract a wide range of international and domestic investors, including a record number of participants for a sovereign-backed issuance.
Leading the issuance as joint-lead managers were ANZ, Commonwealth Bank of Australia (CBA), Nomura, and RBC Capital Markets. The transaction’s success demonstrates the ongoing demand for high-quality, sustainable investment options and reinforces the World Bank’s commitment to fostering sustainable development globally.
Picture by: Reuters
