The World Bank has launched a global sustainable development bond.
These bonds support the financing of green and social projects in IBRD member countries, the World Bank said in a press release. This includes initiatives in poverty alleviation, climate action, and sustainable development.
Unprecedented interest:
More than 70 investors worldwide showed an unprecedented interest in the issuance, which led to a strong final order book worth over AUD 3.1 billion.
The bond provides a fixed coupon rate of 4.35% annually, resulting in a spread of +42 basis points over the Australian government bond maturing in November 2029.
Lead managers:
The joint lead managers for the transaction are ANZ, Commonwealth Bank of Australia, Nomura, and RBC.
Jorge Familiar, Vice President and Treasurer, World Bank, said, “This is a core market for a diverse group of global investors, and this benchmark provides them an opportunity to contribute to the World Bank’s mission to end extreme poverty and boost shared prosperity on a liveable planet through a liquid, high-quality investment.”
Thought leadership:
“ANZ is pleased to have once again partnered with the World Bank on this highly successful 5-year Sustainable Development Bond. The impressive AUD 3.1 billion final order book and the World Bank’s ability to tighten the final price underscore the robust and diverse investor base that they have cultivated in the Kangaroo market. The AUD 1.75 billion final transaction has set a solid benchmark for the Kangaroo Sovereign, Supranational, and Agency (SSA) market for 2025,” said Brenton Smith, Director, Debt Syndicate, ANZ.
“… The transaction attracted diverse investors from domestic and international buyers, and we were particularly pleased to see the Australian investor base engaging meaningfully in the SSA sector at the start of the year…,” said Nikolaus Romuld, Head, Bond Syndicate and High Grade Origination, Commonwealth Bank of Australia.
