Washington, DC, September 26, 2014 – Today, the World Bank (International Bank for Reconstruction and Development - IBRD - Aaa/AAA) priced a NZD 350 million 7- year benchmark bond. This is the third NZD Kauri bond issued by the World Bank this year and the first 7-year World Bank Kauri since July 2007. The new issue attracted a surprisingly large number of new Kauri investors.
The joint-lead managers for the transaction were ANZ Bank New Zealand Limited and The Toronto-Dominion Bank (TD Securities).
“This transaction allowed us to establish a new line and also extend our NZD yield curve. We are delighted with the outcome. Not only did the transaction attract the largest number of first-time investors in our Kauri bond it is also the most diverse Kauri book that we have seen. We are extremely thankful to our investors and financial partners for their continued support," said Andrea Dore, Lead Financial Officer, Capital Markets at the World Bank.
“ANZ is pleased to have been lead manager on a number longer-dated Kauri transactions this year, but the World Bank’s 7-year bond reveals a new level of potential for the Kauri market beyond the commonly targeted 5-year tenor. The wide appeal of the World Bank in NZD was never in doubt, but the breadth of participating accounts and the geographical disbursement were impressive for a Kauri of any tenor. Once again the World Bank is at the forefront of a developing Kauri market and ANZ is thrilled to have played a role in this successful transaction,” said Glen Sorensen, Syndicate, ANZ.
“7-year Kauri bonds, like Kauri trees, are not often seen. IBRD acted decisively against a constructive market backdrop to offer an attractive issue to the market. The depth and diversity of the investor book is a testament to the ongoing investor marketing which the World Bank does to open these less accessed markets. TD Securities was very happy to be entrusted with 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 high-quality, liquid instruments in a variety of currencies to its investors. 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.
Summary Terms and Conditions
Issuer: World Bank (International Bank for Reconstruction and Development, IBRD)
Issuer rating: Aaa/AAA
Amount: NZD* 350 million
Settlement date: 6 October 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)
Coupon: 4.625% p. semi-annual
Coupon payment dates: 6 April and 6 October in each year, beginning on 6 April 2015, up to
and including the Maturity Date
Maturity date: 6 October 2021
Issue price: 99.445142%
Issue yield: 4.719% p.a semi-annual
Listing: Luxembourg Stock Exchange
Clearing systems: NZ Clear and Euroclear
ISIN: NZIBDDT008C4
Joint lead managers: The Toronto-Dominion Bank (“TD Securities”), ANZ Bank New Zealand Limited
*On December 4, 2014, IBRD agreed to increase the principal amount with a second tranche in the amount of NZD 250 million with an issue price of 101.223138% (settlement date: December 15, 2014). On March 3, 2015, IBRD agreed to further increase the principal amount with a third tranche in the amount of NZD 150 million with an issue price of 104.029172% (settlement date: March 11, 2015).The new total outstanding principal amount is NZD 750 million.
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 sustainable development bonds in the international capital markets for over 60 years to fund its
activities that achieve a positive impact. Information on bonds for investors is available on the World Bank
Treasury website: (www.worldbank.org/debtsecurities).
