The World Bank launched today a 250 million (about US$ 148 million equivalent) public bond offering in the New Zealand domestic market. This is the World Bank's first domestic New Zealand dollar issue and the first by a nonresident borrower. The bonds have a 7-year maturity, a semiannual coupon of 12-1/2 percent and an offering price of 100.90, for a yield of 12.30 percent on a semiannual equivalent basis. The bonds are being offered concurrently in the New Zealand and U.S. domestic markets and in the Euromarkets.
To facilitate the participation of international investors in this domestic transaction, the World Bank has worked with the Reserve Bank of New Zealand, Cedel, Euroclear, The Depository Trust Company of N.Y. (OTC) and Citibank N.A. to establish multiple clearing arrangements for the bonds.
Accordingly, the bonds can be cleared and settled in book entry form through the Reserve Bank of New Zealand, Euroclear, Cedel and DTC in the United States. Links have been established among these clearing systems to streamline cross-market trading.
This issue will be placed by an international syndicate of investment dealers that includes Fay Richwhite & Co. Ltd. as lead manager, The National Bank of New Zealand as co-lead manager and Bankers Trust Company Limited, Bank of New Zealand, Citibank, N.A., Merrill Lynch Capital Markets, Nomura Securities and Westpac Banking Corporation as managers.
The proceeds of this issue will be swapped for Deutsche mark which will be used in the general operations of the World Bank.