About World Bank Treasury  |  FAQ  |  Contact  
|  

Press Releases


World Bank Increases its January 2021 Kauri Bond surpassing

the NZD 2 Billion Mark

Washington, DC, June 15, 2016 -The World Bank (International Bank for Reconstruction and Development,
IBRD rated Aaa/AAA) has priced a NZD 875 million increase to their existing 3.5% January 2021 Kauri fixed-rate global bond. The trade was launched with an initial target size of NZD 250 million but strong demand saw the tap upsized to NZD 875 million, making it the largest Kauri deal to be priced.  In combination with the original tranche of NZD 550m (priced January 2016) and a prior increase of NZD 600 million (priced April 2016), the total amount outstanding for this World Bank bond has skyrocketed to NZD 2.025 billion, making it the largest outstanding Kauri bond in the market.

The bonds were distributed to a broad range of institutional investors in the Americas (47%), New Zealand (37%), Asia other than Japan (6%), Europe (6%) and Japan (4%) with orders from asset managers (58%), commercial banks (40%), and official institutions (2%).

The joint-lead managers for the transaction were the Australia and New Zealand Banking Group Limited (“ANZ”) and Bank of New Zealand (“BNZ”).

“We are extremely pleased with the result of this NZD increase. This transaction demonstrates how markets such
as the Kauri market continue to play a significant role in our funding strategy allowing us to increase the diversity
of products we make available to investors globally. We are extremely appreciative of the continued strong
support we receive from investors and financial partners for our global sustainable development mandate,” said Arunma Oteh, Vice President and Treasurer, World Bank.

“Wow. There is simply no other issuer that attracts the size and diversity of investor demand for Kauri bonds that World Bank does. They just keep setting new records and attracting new investors and in doing so they are developing the Kauri market.  So thanks, World Bank - it was once again ANZ’s pleasure to be involved in this benchmark transaction.” said Glen Sorensen, Director, Debt Syndicate NZ, ANZ

"This transaction is a standout in the Kauri market. In a year when deal volumes have been more modest
than recent years, for World Bank to price the largest single transaction ever is remarkable, and reinforces the
role it has always taken in the development of the Kauri market,” said Mike Faville, Head of Debt
Capital Markets, BNZ Markets, Bank of New Zealand
.

 Transaction Summary:

Issuer:

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

Issuer rating:

Aaa/AAA

Amount:

NZD 875 million, Total Outstanding of NZD 2,025 million  

Settlement date:

24 June 2016

Minimum Subscription:

NZD 1,000 (within New Zealand NZD 750,000)

Denomination:

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

Format:

Registered notes

Coupon:

3.50% per annum semi-annual

Coupon payment dates:

22 January and 22 July in each year, beginning on 22 July 2016, up to and including the maturity date

Maturity date:

22 January 2021

Issue price:

103.042369% +154 days’ accrued interest of 1.480769%

Issue yield:

2.787% per annum semi-annual

Listing:

Luxembourg Stock Exchange

Clearing systems:

NZ Clear

ISIN:

NZIBDDT010C0

Joint lead managers:

Australia and New Zealand Banking Group Limited, Bank of New Zealand

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 and the original member of the World Bank Group. It operates as a global development cooperative owned by 189 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 and achieve a positive impact. Information on bonds for investors is available on the World Bank Treasury website: www.worldbank.org/debtsecurities.

 

Back to Press Releases