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PRESS RELEASE April 14, 2016

World Bank Increases its January 2021 Kauri Bond bringing total size to over NZD 1 billion

Washington DC, April 14, 2016 -The World Bank (International Bank for Reconstruction and Development, IBRD rated Aaa/AAA) has priced a NZD 600 million tap to their existing 3.5% January 2021 Kauri fixed-rate global bond. The trade was launched with an initial minimum target size of NZD 200m but was upsized on the back of the very strong investor demand, taking total amount outstanding to NZD 1.15bn. The deal priced at 102.651813% (plus 90 days of accrued interest) to yield 2.898%. This equates to a spread of 66.3 basis points over the New Zealand Government Bond due May 2021. This is the biggest Kauri trade priced this year, highlighting World Bank’s leading presence in this market.

The bonds were distributed to a broad range of institutional investors in New Zealand 56%, Americas 21%, Australia 9%, Europe 8% and Asia 6%, 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 TD Securities (TD).

“We are delighted with the outcome of this transaction particularly the quality of the order book. The Kauri market continues to play an important role in our funding strategy allowing us to increase the diversity of the products we make available to our investors globally. We are extremely appreciative of the continued strong support we receive from investors and financial partners for our global sustainable development mandate,” said Andrea Dore, Lead Financial Officer, Capital Markets, at the World Bank.

“World Bank has done it again with another hugely successful increase to their 5-year Kauri line. It was clear that investors saw value in the wider swap spreads available in New Zealand and this was reflected in a broad and diverse order book. TD Securities was very happy to be involved in this reopening,” said Tom Irving, Managing Director, TD Securities.

“ANZ congratulates the World Bank on another very successful transaction in the Kauri market. This transaction is testament to the efforts they have made to foster and develop the market since its inception. The transaction has been widely supported and establishes another issue of depth for the market,” said Dean Spicer, Head of Capital Markets NZ, at ANZ.

Transaction Summary


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

Issuer rating:



NZD 600 million, Total Outstanding NZD 1,150 million

Settlement date:

April 21, 2016

Minimum Subscription:

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)


Registered notes


3.5% semi-annual

Coupon payment dates:

22 January and 22 July in each year, beginning on 22 July 2016, up to and including the maturity date

Maturity date:

January 22, 2021

Issue price:

102.651813 + 90 days accrued of 0.865385%

Issue yield:

2.898% semi-annual


Luxembourg Stock Exchange

Clearing systems:

NZ Clear



Joint lead managers:

ANZ Bank New Zealand Limited, TD Securities

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 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 Group has two main goals: to end extreme poverty and promote shared prosperity. The World Bank (IBRD) 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. The World Bank has been issuing sustainable development bonds in the international capital markets for over 60 years to fund its activities and achieve a positive impact. Information on bonds for investors is available on the World Bank Treasury website: