About World Bank Treasury  |  FAQ  |  Contact  
|  
  

Press Releases


World Bank Prices the Largest NZD Primary Kauri Bond Offering

Washington, DC, January 28, 2015 – The World Bank (International Bank for Reconstruction and Development, IBRD rated Aaa/AAA) has priced a new NZD 800 million 3.75% February 2020 Kauri fixed-rate global bond. At NZD 800 million, the deal represents the largest ever primary offering in the Kauri market. The transaction follows a record breaking NZD 800 million increase to the 4.625% February 2019 fixed-rate global bonds last year and reinforces the World Bank’s market leading presence in the Kauri market.

The bonds were distributed to a broad range of institutional investors in New Zealand 74%, Japan 11%, Americas 5%, Europe & Middle East 4%, Asia 3%, and Australia 3%, with over 20 orders from central banks and other official institutions, commercial banks, fund managers and pension/insurance companies.

The joint-lead managers for the transaction were ANZ and Westpac Banking Corporation (acting through its New Zealand Branch).

“This is a remarkable transaction and we are very pleased with the result. We are grateful for the investor support for the World Bank and its global development mandate. The New Zealand Dollar market is an important strategic market for us and an integral part of the World Bank’s funding program" said Andrea Dore, Lead Financial Officer, Capital Markets, at the World Bank.

“It’s been a very strong start to the year for the Kauri market and this new NZD 800 million 5-year line from the World Bank builds on the development of the market in 2014 and certainly illustrates that the Kauri market can and does offer issuers meaningfully large and diversified funding opportunities. Westpac is again very pleased to have been involved in this transaction from the World Bank,” said Peter Dalton, Head of Syndicate at Westpac.

“Today’s record setting benchmark is further evidence of the strong following the World Bank has amongst Kauri investors and reaffirms the World Bank as the largest Kauri issuer by outstanding bonds. The World Bank has been a leader in the development of the Kauri market since its inception and today’s issue represents another distinguished milestone in that history. We acknowledge the World Bank for the efforts it has made to achieve such an exceptional transaction and ANZ are thrilled to have played a part.” Said Glen Sorensen, Director, Syndicate at ANZ.

The present transaction is consistent with the World Bank’s longstanding practice of deploying its franchise as an issuer in the international capital markets to offer investors high-quality, liquid instruments in a variety of currencies. This approach has direct benefits for World Bank member countries as well, since as a cooperative institution it is able to fund its activities as a provider of financial services to its members on highly attractive terms.

Investor Distribution



Transaction Summary:

Issuer:

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

Issuer rating:

Aaa/AAA

Amount:

NZD 800 million  

Settlement date:

February 10, 2015

Minimum Subscription:

NZD 1,000 (within New Zealand NZD 500,000)

Denomination:

NZD 1,000 and multiples thereof (within New Zealand, NZD 100,000 with multiples of NZD1,000 thereafter)

Format:

Registered notes

Coupon:

3.75% semi-annual

Coupon payment dates:

10 February and 10 August in each year, beginning on 10 August 2015, up to and including the maturity date

Maturity date:

February 10, 2020

Issue price:

99.589587%

Issue yield:

3.841% semi-annual

Listing:

Luxembourg Stock Exchange

Clearing systems:

NZ Clear and Euroclear

ISIN:

NZIBDDT009C2

Joint lead managers:

ANZ, Westpac Banking Corporation (acting through its New Zealand Branch)

 

 

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 188 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 sustainable development bonds in the international capital markets for over 60 years to fund its activities that achieve a positive impact.
Information for investors is available on the World Bank Treasury website: (www.worldbank.org/debtsecurities).

Back to Press Releases