Washington, DC, July 30, 2015 – The World Bank (International Bank for Reconstruction and Development, IBRD rated Aaa/AAA) has priced a NZD 300 million tap to the existing 4.625% October 2021 Kauri fixed-rate global bond bringing the total outstanding to NZD 1.05 billion.
The bonds were distributed to a broad range of institutional investors in New Zealand 67%, Asia 17%, Japan 9%, Americas 6%, and Europe 1%, with around 20 orders from central banks and other official institutions, commercial banks, and asset managers.
The joint-lead managers for the transaction were the Australia and New Zealand Banking Group (ANZ) and
Bank of New Zealand (BNZ).
“The Kauri market is a strategic market for the World Bank so we are delighted with the positive investor reception for this transaction. This transaction allowed us to increase the liquidity in our existing NZD 2021 bond, making it more attractive to investors who prefer larger transaction sizes. We would like to thank all the investors who participated in this bond,” said Andrea Dore, Lead Financial Officer, Capital Markets, at the World Bank.
“The World Bank was the ideal name to re-open the Kauri market after a period of hibernation. We have learnt to rely on The World Bank to ensure the strongest possible response in NZD, and this result reinforces that conviction. To have a Kauri line with over NZD 1 billion outstanding before it rolls into the market ‘sweet spot’ of 5 years, further demonstrates the growing liquidity that the Kauri market offers to investors. We wish to acknowledge The World Bank’s efforts in bringing this transaction to market, and ANZ are very pleased to have played a part.” said Glen Sorensen, Director, Syndicate at ANZ.
"This is the first Kauri line longer than 5 years to reach NZD 1 billion size in a long time. It's very pleasing to see the continued development of the market, and of course the World Bank has been an integral part of that," said Mike Faville, Head of Debt Capital Markets at BNZ in Auckland.
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.
Summary terms and conditions
World Bank (International Bank for Reconstruction and Development, IBRD)
NZD 300 million
August 11, 2015
NZD 1,000 (within New Zealand NZD 750,000)
NZD 1,000 and multiples thereof (within New Zealand, NZD 100,000 with multiples of NZD1,000 thereafter)
Coupon payment dates:
6 April and 6 October in each year, beginning on 6 October 2015, up to
6 October 2021
105.596483% + 127 days accrued interest of 1.60484973%
Luxembourg Stock Exchange
Joint lead managers:
ANZ Bank New Zealand Limited, Bank of New Zealand
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).