Washington, DC, June 13, 2014 – The World Bank (International Bank for Reconstruction and Development, IBRD rated Aaa/AAA) priced an increase to the 4.625% February 2019 fixed-rate global bond. This is the World Bank’s largest single tranche global NZD bond and represents also the market’s biggest ever single tranche offering. At an outstanding volume of NZD 1.35 billion, this too represents the largest bond in the Kauri market.
The bonds were distributed to a broad range of institutional investors in New Zealand 51%, Asia 28%, Europe 7%, Americas 7%, and Japan 7% with over 20 orders from central banks and other official institutions, commercial banks, fund managers and pension/insurance companies.
The joint-lead managers for the transaction were TD Securities and Westpac Institutional Bank.
“We are delighted with the outcome of this transaction particularly the good quality of the order book and the breadth of the investors who participated in the trade. We are pleased that investors continue to value the World Bank name, supporting the development work that the World Bank is doing worldwide, through their continued investments in World Bank bonds." said Andrea Dore, Lead Financial Officer, Capital Markets at the World Bank.
“This is a significant transaction from the World Bank and sets and a new highmark point in the development of the Kauri market. Its encouraging that transactions of this size and quality can be delivered in NZD Kauri format. Westpac is again very pleased to have been involved in another first from the World Bank,” said Peter Dalton, Head of Syndicate at Westpac.
“It’s a testament to the high regard in which the World Bank name is held in the NZD market, this has allowed the borrower to print the largest trade from a Sovereign Supranational and Agency issuer in Kauri format. The timing for this trade proved opportune, coming off the back of low supply and high relative yields which appealed to the full spectrum of investors. TD Securities was extremely happy to be involved in this transaction,” said Tom Irving, Managing Director, Head of Asian Syndicate at TD Securities
The present transaction is consistent with the World Bank’s longstanding practice of deploying its franchise as an issuer in the international capital markets to offer investors high-quality, liquid instruments in a variety of currencies. This approach has direct benefits for World Bank member countries as well, since as a cooperative institution it is able to fund its activities as a provider of financial services to its members on highly attractive terms.
Transaction Summary:
Issuer: World Bank (International Bank for Reconstruction and Development, IBRD)
Issuer rating: Aaa/AAA
Amount: NZD 800 million (to take the total outstanding amount to NZD 1.35 billion)
Settlement date: June 23, 2014
Minimum Subscription: NZD 1,000 (within New Zealand NZD 500,000)
Denomination: NZD 1,000 and multiples thereof (within New Zealand, NZD 100,000 with multiples of NZD1,000 thereafter)
Format: Registered notes
Coupon: 4.625% semi-annual
Coupon payment dates: 26 February and 26 August in each year, beginning on 26 August 2014, up to and including the maturity date
Maturity date: February 26, 2019
Issue price: 99.599298%
Issue yield: 4.72% semi-annual
Listing: Luxembourg Stock Exchange
Clearing systems: NZ Clear and Euroclear
ISIN: NZIBDDT007C6
Joint lead managers: The Toronto-Dominion Bank (TD Securities), Westpac Institutional Bank
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. It operates as a global development cooperative owned by 188 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 and by coordinating responses to regional and global challenges. It has been issuing bonds in the international capital markets for over 60 years to fund its activities. Information for investors is available on the World Bank Treasury website: (www.worldbank.org/debtsecurities).
