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.
KangaNews is proud to present the winners of the institutional and deal categories in the KangaNews Awards 2017. After an extensive voting and verification process, KangaNews can confidently say its results reflect a true market view on the outstanding performers of 2017 in the Australian and New Zealand debt markets.
On 15 November, World Bank (AAA/Aaa) launched a new, indicative A$300 million (US$218.2 million) seven-year Kangaroo green-bond transaction, marking the 10-year anniversary of the first green bond issued in 2008. Indicative price guidance for the forthcoming deal is 39 basis points area over semi-quarterly swap, equivalent to 48.25 basis points area over Australian Commonwealth government bond.
Leading supranational, sovereign and agency (SSA) issuers have shared insights into the changing shape of their sector, with a focus on benchmark reform, the issuance-currency mix and evolution in sustainable debt markets. Kangaroo issuance faces some headwinds at present but SSAs see no reason why the market cannot rebound in 2019.
World Bank priced a historic bond using blockchain technology in Kangaroo format, on 23 August. Bond-i – the “blockchain-operated new debt instrument” – is the world’s first blockchain bond. The technology is nascent, but deal participants are confident in the security of the platform and adamant about its potential to offer increased efficiency and transparency.