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PRESS RELEASE January 18, 2017

World Bank Issues its First NZD Kauri Benchmark for 2017

Washington, DC, January 18, 2017 – The World Bank (International Bank for Reconstruction and Development, IBRD rated Aaa/AAA) has priced a new NZD 550 million 3.375% fixed-rate global bond due January 2022. The trade was launched with an initial minimum target size of NZD 200 million but was upsized on the back of very strong investor demand. The deal priced at 99.717394% to yield 3.437%. This equates to a spread of 90.7 basis points over the New Zealand Government Bond (NZGB) due May 2021.

The bonds were distributed to a broad range of institutional investors in New Zealand (70%), Asia (13%), Japan (7%), Europe (6%), and Americas (4%), and, with over 30 investors involved including 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), Bank of New Zealand (BNZ) and TD Securities (TD). 

"We are delighted to return to the Kauri market with another successful transaction. We appreciate the strong interest from domestic investors as well as those from around the world who continue to support our sustainable development mandate. It is a pleasure for the World Bank to continue to provide liquidity to investors in the Kauri market. I commend our partners for a very successful transaction,” said Arunma Oteh, Vice President and Treasurer, World Bank.


Investor Distribution

By Geography

By Investor Type

New Zealand






Asset Managers




Insurance/Pension Funds









Transaction Summary


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

Issuer rating:



NZD 550 million

Settlement date:

January 25, 2017

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


3.375% p.a. semi-annual

Coupon payment dates:

25 January and 25 July in each year, beginning on 25 July 2017, up to and including the maturity date

Maturity date:

January 25, 2022

Re-offer price:


Re-offer yield:

3.437% p.a. semi-annual


Luxembourg Stock Exchange

Clearing systems:

NZ Clear



Joint lead managers:

ANZ Bank New Zealand Limited (ANZ), Bank of New Zealand (BNZ), TD Securities


Joint Lead Manager Quotes

"Once again the World Bank provides a solid launching pad for the Kauri market in the new year. In achieving NZD 550 million of funding from a diverse book of over 30 accounts the World Bank has established another issue of depth in the market. ANZ is very happy to have played a part in this successful transaction,” said Glen Sorensen, Director, Syndicate, ANZ. 

"Congratulations to World Bank on another fantastic issue in the Kauri Market. Always well-balanced, representing value to investors, and being efficient for World Bank, the deal continues the issuer's market development role in the New Zealand market. It's a pleasure for BNZ to be able to assist in achieving it,” said Mike Faville, Head of Debt Capital Markets, BNZ.

"With the reflation trade seeing a rotation from fixed income to equities central to investors’ minds, NZD Kauri demand has been mixed for the past 6 months. As a result, the market needed a fairly priced primary offering from a premier issuer and that’s what it received with this benchmark offering from World Bank. The result is extremely impressive and furthers the status of the World Bank in the NZD Kauri market,” said Tom Irving, Managing Director, 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. It operates as a global development cooperative owned by 189 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 bonds in the international capital markets for over 60 years to fund its sustainable development activities and achieve a positive impact. Information on bonds for investors is available on the World Bank Treasury website: