Accessing private investors and adding scale to tangible impact investing motivated World Bank to bring its new sustainable growth bond. The issuer and its lead say the deal presented a unique opportunity to engage new investors on the UN sustainable development goals (SDGs) and World Bank’s bond issuance.
World Bank’s latest Kangaroo deal marks its return to large mid-curve volume issuance, having been absent since September 2017. The leads and issuer say a softening global rates environment and increasingly positive market tone were key in achieving very robust volume outcome.
On 19 February, World Bank (AAA/Aaa) launched an indicative A$500 million (US$356.1 million), new five-year Kangaroo bond, via ANZ, J.P. Morgan and Nomura. The forthcoming deal has indicative price guidance of 39 basis points are over semi-quarterly swap, equivalent to 53.25 basis points area over Australian Commonwealth government bond. Pricing is expected on the day after launch.
Trends and data from the Australasian sustainable-debt market.
The Kauri market saw its first deal of 2019 on 16 January when World Bank priced a NZ$400 million (US$270.7 million), five-year deal. Deal sources say offshore interest in Kauri deals has waned but robust domestic participation and low relative yield are accommodative to issuers.