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Washington DC, February 11, 2020 – The World Bank (International Bank for Reconstruction and Development, IBRD rated Aaa/AAA) has priced a NZD 600 million 1.375% fixed-rate global bond due February 19, 2025. The Kauri bond was launched with an initial minimum target size of NZD 200 million and was increased due to very strong investor demand. The deal priced at 99.591577% to yield 1.46% p.a. semi-annual. This equates to a spread of 40 basis points over the New Zealand Government Bond (NZGB) due April 2025.
The bonds were distributed to a broad range of institutional investors in New Zealand (79%), Asia (20%), and Europe (1%). Around 20 investors participated including 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).
“We are extremely grateful for the strong support from Kauri investors, who through this transaction help the World Bank advance important sustainable development projects and programs in its member countries,” said Andrea Dore, Head of Funding, World Bank Treasury.
Investor Distribution
| By Geography | By Investor Type | ||
| New Zealand | 79% | Banks/Bank Treasuries/Corporates | 80% |
| Asia | 20% | Asset Managers / Insurance / Pension Funds | 20% |
| Europe | 1% | ||
Joint Lead Manager Quotes:
“The World Bank joins the Kauri primary market after the market’s lean start to 2020 and prints what is an impressive volume in Kauri for any month of any year. NZ$600m is a great result, welcomed by a diverse range of investors and ANZ was thrilled to have been involved in the transaction,” said Glen Sorensen, Director, Syndicate, ANZ.
“The World Bank’s NZ$600 million transaction was timed very nicely to take advantage of their existing maturity. The end result was a strong and diverse group of investors that spanned geographical and investor classes,” said Mike Faville, Head of Debt Capital Markets, BNZ.
Transaction Summary:
| Issuer: | World Bank (International Bank for Reconstruction and Development, IBRD) |
| Issuer rating: | Aaa/AAA |
| Amount: | NZD 600 million |
| Settlement date: | February 19, 2020 |
| Minimum Subscription: | NZD 1,000 (within New Zealand, NZD 750,000) |
| Minimum denominations and minimum holding: | NZD 1,000 and multiples thereof (within New Zealand, NZD 100,000 with multiples of NZD 1,000 thereafter) |
| Format: | Registered notes |
| Coupon: | 1.375% p.a. semi-annual |
| Coupon payment dates: |
February 19 and August 19 in each year, commencing with a full first coupon payable on August 19, 2020 (subject to the Business Day Convention), up to and including the Maturity Date |
| Maturity date: | February 19, 2025 |
| Re-offer price: | 99.591577% |
| Re-offer yield: | 1.46 % p.a. semi-annual |
| Listing: | Luxembourg Stock Exchange |
| Clearing systems: | NZ Clear |
| ISIN: | NZIBDDT014C2 |
| Joint lead managers: | ANZ Bank New Zealand Limited (ANZ), Bank of New Zealand (BNZ) |
Disclaimer
This press release is not an offer for sale of securities of the International Bank for Reconstruction and Development ("IBRD"), also known in the capital markets as "World Bank". Any offering of World Bank securities will take place solely on the basis of the relevant offering documentation including, but not limited to, the prospectus, term sheet and/or final terms, as applicable, prepared by the World Bank or on behalf of the World Bank, and is subject to restrictions under the laws of several countries, including under the laws of New Zealand. World Bank securities may not be offered or sold except in compliance with all such laws.
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 is the original member of the World Bank Group and operates as a global development cooperative owned by 189 nations. The World Bank provides loans, guarantees, risk management products, and advisory services to middle-income and other creditworthy countries to support the Sustainable Development Goals and to end extreme poverty and promote shared prosperity. It also provides leadership to coordinate regional and global responses to development challenges. The World Bank has been issuing sustainable development bonds in the international capital markets for over 70 years to fund programs and activities that achieve a positive impact. More information on World Bank bonds is available at www.worldbank.org/debtsecurities.
Contact
Heike Reichelt, Head of Investor Relations and New Products
World Bank Treasury
debtsecurities@worldbank.org
About The World Bank
The World Bank Group has a bold vision: to create a world free of poverty on a livable planet. In more than 100 countries, the World Bank Group provides financing, advice, and innovative solutions that improve lives by creating jobs, strengthening economic growth, and confronting the most urgent global challenges. For more information, please visit www.worldbank.org, www.miga.org, and www.ifc.org.
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