PRESS RELEASE January 16, 2019

World Bank to Issue its First NZD Kauri Benchmark for 2019

Washington, DC, January 16, 2018 – The World Bank (International Bank for Reconstruction and Development, IBRD rated Aaa/AAA) has priced a new NZD 400 million 2.50% fixed-rate global bond due January 24, 2024. The deal priced at a yield of 2.517%, with a coupon of 2.50% which represented a margin of 41bps over the 5-year mid-swap rate and 74 basis points over the New Zealand Government Bond (NZGB) 5.5% due April 2023.

The joint-lead managers for the transaction were the Australia and New Zealand Banking Group (ANZ), Bank of New Zealand (BNZ) and Commonwealth Bank of Australia (CBA).

Transaction Summary: *

Issuer:

World Bank (International Bank for Reconstruction and Development, IBRD)

Issuer rating:

Aaa/AAA

Amount:

NZD 400 million

Settlement date:

January 24, 2019

Minimum Subscription:

NZD 1,000 (within New Zealand NZD 750,000)

Denomination:

NZD 1,000 and multiples thereof (within New Zealand, NZD 100,000 with multiples of NZD1,000 thereafter)

Format:

Registered notes

Coupon:

2.50% p.a. semi-annual

Coupon payment dates:

24 January and 24 July in each year, with the first on 24 July 2019 (subject to the business day convention), up to and including the maturity date

Maturity date:

January 24, 2024

Re-offer price:

99.920599%

Re-offer yield:

2.517% p.a. semi-annual

Listing:

Luxembourg Stock Exchange

Clearing systems:

NZ Clear

ISIN:

NZIBDDT013C4

Joint lead managers:

ANZ Bank New Zealand Limited (ANZ), Bank of New Zealand (BNZ), Commonwealth Bank of Australia (CBA)


*
This press release is not an offer for sale of bonds of the International Bank for Reconstruction and Development ("IBRD"), also known in the capital markets as "World Bank". Any offering of bonds will take place solely on the basis of the relevant offering documentation including, but not limited to, the prospectus, term sheet and/or final terms, as applicable, prepared by the World Bank or on behalf of the World Bank, and is subject to restrictions under the laws of several countries, including under the laws of New Zealand.  The bonds may not be offered or sold except in compliance with all such laws.


About the World Bank

The World Bank (International Bank for Reconstruction and Development, IBRD), rated Aaa/AAA (Moody’s/S&P), is an international organization created in 1944 and the original member of the World Bank Group. It operates as a global development cooperative owned by 189 nations. It provides its members with financing, expertise and coordination services so they can achieve equitable and sustainable economic growth in their national economies and find effective solutions to pressing regional and global economic and environmental problems. The World Bank has two main goals: to end extreme poverty and promote shared prosperity. It seeks to achieve them primarily by providing loans, risk management products, and expertise on development-related disciplines to its borrowing member government clients in middle-income countries and other creditworthy countries, and by coordinating responses to regional and global challenges. It has been issuing sustainable development bonds in the international capital markets for over 70 years to fund its activities that achieve a positive impact. Information on World Bank bonds for investors is available here www.worldbank.org/debtsecurities.

Bond Proceeds

The World Bank (IBRD) issues USD 50 to 55 billion in bonds for sustainable development projects and programs every year. Without being committed or earmarked for lending to, or financing of, any particular projects or programs, the net proceeds of the bonds are used to support the financing of sustainable development projects and programs in countries that are middle-income or creditworthy lower-income IBRD members and are working in partnership with IBRD to eliminate extreme poverty and boost shared prosperity. Projects and programs supported by IBRD are designed to achieve a positive social impact and undergo a rigorous review and internal approval process aimed at safeguarding equitable and sustainable economic growth.

 


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