About World Bank Treasury  |  FAQ  |  Contact  
|  

Press Releases

World Bank Prices its Largest NZD Kauri Bond

Washington, DC, February 18, 2014 – Today, the World Bank (International Bank for Reconstruction and
Development, IBRD rated Aaa/AAA) priced a new NZD 550 million 5-year fixed-rate global bond. This is the World Bank’s largest single tranche Kauri bond and this issue brings the World Bank’s outstanding total in Kauri bonds to NZD 3.8 billion.

The bonds were distributed to a broad range of institutional investors in New Zealand 26%, Asia 55%, Europe 16%, and Americas 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 TD Securities.

“We are pleased with the good size of this transaction and the broad based order book including from our core investor base. We are grateful for the continued support we get from our investors and bank partners for the World Bank's development mandate and the demonstration that investors continue to value the World Bank”, said Andrea Dore, Lead Financial Officer, Capital Markets at the World Bank.

“World Bank has attracted possibly the most diverse Kauri book I have seen. It was a different book than we have seen in the past also, with a greater offshore proportion. It just shows that while the Kauri investor base may continue to develop and evolve, the strong appetite for World Bank in NZD remains a constant”, said Glen Sorensen, Director Syndicate at ANZ in Wellington.

“World Bank has proved again that they have a huge following in NZD with another blowout trade. It was particularly pleasing to see such a broad range of investors in this book with a very granular order book. TD Securities is delighted to be a part of such a successful transaction”, said Tom Irving, Managing Director, Head of Asian Syndicate at TD Securities.

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 investor’s high-quality, liquid instruments. 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.

Distribution charts:

Summary terms and conditions:

Issuer:
World Bank (International Bank for Reconstruction and Development)
Issuer rating:
Aaa/AAA
Amount:
NZD *550 million
Settlement date:
February 26, 2014
Maturity date:
February 26, 2019
Issue price:
99.634034%
Yield:
4.708% semi-annual
Coupon:
4.625% semi-annual
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
Listing: Luxembourg Stock Exchange
Clearing systems:
NZ Clear and Euroclear
Joint lead managers:
ANZ Bank New Zealand Limited, The Toronto-Dominion Bank

*On June 13, 2014, IBRD agreed to increase the principal amount with a second tranche in the amount of NZD 800 million with an issue price of 100% (settlement date: June 23, 2014). The new total outstanding principal amount is NZD 1.350 billion. See press release for details

 

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 overriding goal is to achieve major, sustainable improvements in standards of living worldwide. It has been issuing bonds in the international capital markets for over 60 years to fund its activities. Information for investors is available on the World Bank Treasury website: (www.worldbank.org/debtsecurities).

 

Back to Press Releases