WASHINGTON, D.C., July 11, 2025 – The World Bank (International Bank for Reconstruction and Development, IBRD rated Aaa/AAA) priced a New Zealand dollar 600 million 7-year 4.25% fixed-rate bond due July 23, 2032. This oversubscribed bond, the World Bank’s first in the Kauri market after a nearly two-year hiatus for the World Bank and 18 months for any Sovereign, Supranational and Agency (SSA) issuer, was launched with an initial minimum target size of NZD 300 million and was increased due to strong investor demand.
The deal priced at 99.634768% to yield 4.311% p.a. semi-annually. This equates to a spread of 9.85 basis points over the New Zealand Government Bond due May 15, 2032.
The joint-lead managers for the transaction are ANZ, and Commonwealth Bank of Australia.
“With this successful transaction, we are delighted to meet New Zealand dollar demand from domestic and international investors for high quality, liquid bonds,” said Jorge Familiar Vice President and Treasurer, World Bank. “The World Bank cultivates relationships with a globally diverse investor base, including investors in New Zealand, which helps it raise funds efficiently across the globe to finance its sustainable development activities for loans, guarantees and other financial products.The New Zealand dollar market is strategically important to the World Bank, and our ongoing investor outreach and continuous issuance demonstrate our commitment to supporting liquidity in the market.”
Investor Breakdown by Type
By Geography |
| By Investor Type |
|
New Zealand | 86% | Banks/Bank Treasuries/Corporates | 78% |
Asia & Australia | 12% | Asset Managers/Insurance/Pension Funds | 22% |
Europe, Middle East, Africa | 2% |
|
|
Lead Manager Quotes
“It’s fantastic to see the World Bank break the recent hiatus in the Kauri market. The World Bank has shown that their ongoing investor engagement and diligent approach to the market provides a strong foundation for market access. It was particularly great to see an enhanced breadth of domestic participation given their investor outreach activities,” said, Simon Eckhoff, Director, Syndicate & Debt Capital Markets, ANZ.
“Congratulations to the World Bank for successfully reopening the Kauri market after 18 months of no issuance from SSA issuers. The World Bank timed the transaction well, taking advantage of improving pricing relativities. The deal attracted a strong and diverse orderbook, with broad investor participation, which is a testament to the strength of the following of the World Bank investor base. Several supportive dynamics contributed to the outcome including the scarcity of recent Kauri supply, tightening secondary spreads, a stable basis swap environment and renewed demand for NZD SSA bonds. CBA is proud to have supported the World Bank on this important transaction,” said, Desmond Fennell, Head of Capital Markets and Syndicate, Commonwealth Bank of Australia
Transaction Summary
Issuer: | World Bank (International Bank for Reconstruction and Development, IBRD) |
Issuer rating: | Aaa /AAA |
Amount: | NZD 600,000,000 |
Settlement date: | July 23, 2025 |
Maturity date: | July 23, 2032 |
Issue price: | 99.634768% |
Issue yield: | 4.311% p.a. semi-annual |
Denomination: | NZD 1,000 and multiples thereof (within New Zealand, NZD 100,000 with multiples of NZD 1,000 thereafter) |
Coupon: | 4.250% p.a. semi-annual (fixed) |
Coupon payment dates: | January 23 and July 23 each year |
ISIN: | NZIBDDT023C3 |
Listing: | Luxembourg Stock Exchange |
Clearing system: | NZClear |
Lead managers: | ANZ Bank New Zealand Limited (ANZ), Commonwealth Bank of Australia (CBA) |
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 end extreme poverty and promote shared prosperity on a livable planet. It also provides leadership to coordinate regional and global responses to development challenges. The World Bank has been issuing bonds in the international capital markets for over 70 years to fund programs and activities that achieve a positive impact. World Bank bonds are aligned with the Sustainability Bond Guidelines published by the International Capital Market Association. More information on the World Bank’s Sustainable Development bonds is available at www.worldbank.org/debtsecurities and in the World Bank’s Sustainable Development Bond Impact Report that describes how the World Bank engages with investors 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 World Bank Sustainable Development Bond Framework, the World Bank’s Sustainable Development Bond Impact Report, and the information set forth therein are not a part of, or incorporated by reference into, the offering documentation.
Net proceeds of the bonds described herein are not committed or earmarked for lending to, or financing of, any particular projects or programs. Payments on the bonds described herein are not funded by any project or program.
Contact
Investor Relations and Sustainable Finance, World Bank Treasury, debtsecurities@worldbank.org
