World Bank plans to add to A$ 2016, 2019 bonds

The World Bank plans to increase two kangaroo bond lines maturing in 2016 and 2019, a joint lead said on Monday. The triple A rated supranational borrower hired RBC, UBS and Westpac to jointly manage the bond reopenings, the joint lead said. The increases involve a 6.00 percent 9 November 2016 bond and a 5.75 percent 21 October 2019 offer, the lead said. Issue launch is seen on Tuesday, according to a fund manager.
Over A$16 billion ($14.9 billion) worth of kangaroo bonds, Australian dollar bonds sold by foreign borrowers in Australia, have been sold this year, compared with none at the same time last year, ADCM data shows. The surge in overseas demand for Australian dollar denominated debt is driven by favourable swap rates that make it cheaper for foreign borrowers to raise money in Australia, particularly long-dated debt.