World Bank Prices 1 Billion 7-Year New Zealand Dollar Benchmark

Washington DC, April 28, 2021 – The World Bank (International Bank for Reconstruction and Development, IBRD rated Aaa/AAA) has priced a NZD 1 billion 1.625% fixed-rate global bond due May 10, 2028. The NZD bond was launched with an initial minimum target size of NZD 300 million and was increased due to very strong investor demand. The size of this bond matches the largest Supranational, Sovereign and Agency (SSA) bond issued last year, which was a 5-year NZD bond issued by the World Bank.

The bonds were distributed to a broad range of institutional investors in New Zealand (87%), Europe (8%), and Asia (5%). More than 20 investors participated including commercial banks and asset managers. The deal priced at 99.625077% to yield 1.682% p.a. semi-annual. This equates to a spread of 44.2 basis points over the New Zealand Government Bond due May 2028.

The lead managers for the transaction are Australia and New Zealand Banking Group Limited (ANZ), Bank of New Zealand (BNZ), and Commonwealth Bank of Australia (CBA).

“We are extremely grateful for the strong support from Kauri investors helping us print the largest New Zealand dollar bond of its kind by an SSA issuer,” said Jingdong Hua, Vice President and Treasurer, World Bank. “Funding from the capital markets supports our member countries’ sustainable development goals including efforts to implement a green, resilient and inclusive recovery to the coronavirus pandemic.”

Investor Distribution

Lead Manager Quotes

“Congratulations to the World Bank for another outstanding Kauri bond transaction, matching their own tranche size record for the market and setting a new benchmark for a 7-year offering. It was a well-timed deal, welcomed by the broad investor base that World Bank attracts in the New Zealand dollar market,” said Glen Sorensen, Director Syndicate, ANZ.

“The World Bank has continued their outstanding track record in 2020 of Kauri issuance to follow suit with another outstanding transaction in 2021. In achieving a second consecutive billion dollar Kauri transaction within six months, we have seen both the demand that the market has for high grade NZ paper at present, and the high regard that investors have for the World Bank as an issuer,” said Mike Faville, Head of Capital Markets, BNZ.

“This outcome reflects the World Bank’s long-term commitment to a variety of benchmark markets and the appreciation New Zealand and Australian dollar investors have for the key role the World Bank plays in the pursuit of sustainable development across the globe,” said Anthony Hermann, Executive General Manager Global Markets, CBA.

Transaction Summary

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.

World Bank bonds support the financing of programs that further the Sustainable Development Goals (SDGs). World Bank bonds are aligned with the Sustainability Bond Guidelines published by the International Capital Market Association and as such support the financing of a combination of green and social, i.e., “sustainable development” projects, programs and activities in IBRD member countries as described in the World Bank Sustainable Development Bond Framework. The World Bank is also a member of the Executive Committee of the Green Bond, Social Bond, and Sustainability Bond Principles. A key priority for the World Bank’s capital markets’ engagement is building strategic partnerships with investors to promote the importance of private sector financing in sustainable development. The World Bank’s Sustainable Development Bond Impact Report describes how the World Bank engages with investors on the SDGs and raises awareness for specific development challenges.

Disclaimers

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.

The net proceeds from the sale of World Bank securities are used to finance sustainable development projects and programs in World Bank’s member countries without being committed or earmarked for lending to, or financing of, any particular projects or programs. Returns on World Bank securities are not linked to the performance of any particular project or program.

Contact

Heike Reichelt, The World Bank
+1 202 477 2880
debtsecurities@worldbank.org