WASHINGTON, DC, July 20, 2022 – The World Bank (International Bank for Reconstruction and Development, IBRD rated Aaa/AAA) has priced a New Zealand dollar 800 million 5-year 4.25% fixed-rate bond due July 29, 2027. The benchmark bond was launched with an initial minimum target size of NZD 300 million and was increased due to strong investor demand.
The deal priced at 99.915263% to yield 4.269% p.a. semi-annual. This equates to a spread of 58.4 basis points over the New Zealand Government Bond due April 2027.
The joint-lead managers for the transaction are ANZ, Commonwealth Bank of Australia, and Westpac Institutional Bank.
“We are delighted to be back in the market with a liquid NZD global bond,” said Jorge Familiar, Vice President and Treasurer, World Bank. “This is a great result – we thank NZD investors for their strong support of sustainable development projects and programs in World Bank member countries.”
Investor Distribution
By Geography | By Investor Type | ||
New Zealand | 89% | Banks/Bank Treasuries | 79% |
EMEA | 6% | Asset Managers/Insurance/Pension Funds | 21% |
Asia | 4% | ||
Americas | 1% |
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Joint Lead Manager Quotes
“Kauri bond investors welcomed the World Bank back for their first primary outing since November 2021, and the diversity of investors that the World Bank attracted was a positive development for the market. While the environment does remain challenging, this impressive NZ$800m result from World Bank has boosted the Kauri primary market to a record setting pace for 2022, and ANZ was privileged to be involved with the transaction,” said Glen Sorensen, Bond Syndicate, ANZ NZ.
“There was a strong investor response to this latest World Bank Sustainable Development Bond Kauri transaction, making them the largest issuer of outstanding bonds by volume in the New Zealand dollar bond market. The Kauri market remains globally competitive for borrowers, while the Sovereign, Supranational and Agency sector offers a meaningful pick-up for investors relative to other New Zealand high grade paper. We are delighted to have worked with the World Bank team on another successful New Zealand dollar transaction,” said Desmond Fennell, CBA Managing Director of Capital Markets and Syndicate, Commonwealth Bank of Australia.
“Congratulations to the World Bank in navigating a volatile backdrop and executing another highly successful Kauri transaction. The final outcome achieved is a real testament to World Bank’s standing and it’s continued dedication to the Kauri market. Westpac was very pleased to be involved,” said Mat Carter, Head of Debt Capital Markets & Syndicate, Westpac Institutional Bank.
Transaction Summary
Issuer: | World Bank (International Bank for Reconstruction and Development, IBRD) |
Issuer rating: | Aaa/AAA |
Amount: | NZD 800,000,000 |
Settlement date: | July 29, 2022 |
Minimum Subscription: | NZD 1,000 (within New Zealand, NZD 100,000) |
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: | 4.250% per annum, payable semi-annually |
Maturity date: | July 29, 2027 |
Re-offer price: | 99.915263% |
Re-offer yield: | 4.269% p.a. semi-annual |
Listing: | Luxembourg Stock Exchange |
Clearing systems: | NZ Clear |
ISIN: | NZIBDDT020C9 |
Joint lead managers: | ANZ, Commonwealth Bank of Australia, Westpac Institutional Bank |
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
Net proceeds of the bonds described herein are not committed or earmarked for lending to, or financing of, any particular projects or programs, and returns on the bonds described herein are not linked to the performance of any particular project or program.
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. World Bank securities may not be offered or sold except in compliance with all such laws. The World Bank Sustainable Development Bond Framework and the information set forth therein are not a part of, or incorporated by reference into, the offering documentation.
Contact
Heike Reichelt, Head of Investor Relations and Sustainable Finance
World Bank Treasury
debtsecurities@worldbank.org
