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World Bank Prices New Zealand Dollar 550 million 5-Year Global Bond

 

Washington, DC, January 14, 2016 – The World Bank (International Bank for Reconstruction and Development, IBRD rated Aaa/AAA) has priced a new NZD550 million 3.50% fixed-rate global bond due January 2021. The transaction size, pricing and quality order book reinforces the World Bank’s market leading presence in the NZD market. The bonds were distributed to a broad range of institutional investors in New Zealand 43%, Asia (including Japan) 26%, Europe 14%, and Americas 17%, with around 26 orders from central banks and other official institutions, commercial banks, and fund managers.

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

"This is a great result and we appreciate the interest from both domestic and international investors in the World Bank and our sustainable development mandate. It is a pleasure for the World Bank to continue to provide liquidity to investors in the Kauri market. I commend our partners for a very successful transaction,” said Arunma Oteh, Vice President and Treasurer, World Bank.

"It shouldn’t surprise us anymore, yet the breadth of demand for World Bank in Kauri bonds so often manages to impress beyond expectations. At NZD 550m this deal, which matches the volume achieved by World Bank in the Kangaroo market, is a very positive outcome for the Kauri market and helps provide participants with a solid launching pad for 2016. We acknowledge the World Bank for its efforts in achieving such a successful transaction and ANZ are pleased to have played a part,” said Glen Sorensen, Director, Syndicate, ANZ.

"Since 2007, the World Bank has provided Kauri bond investors with large benchmark lines to invest in. 2016 was no exception, with another very successful offering in challenging global market conditions. It was important for investors to see a large, liquid offering which provided a pickup over the sovereign, and this is what they received. This led to strong participation from offshore asset managers, in addition to traditional supporters of World Bank Kauris. TD Securities was very pleased to be involved in this transaction," said Tom Irving, Managing Director, Syndicate, TD Securities.

"Another outstanding Kauri transaction by the World Bank and especially pleasing given the current market volatility. The book had good diversification and reflects the continued positive investor sentiment for the World Bank by Kauri investors,” said Peter Dalton, Director, Syndicate at Westpac.



Transaction Summary:

Issuer:

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

Issuer rating:

Aaa/AAA

Amount:

NZD 550 million

Settlement date:

January 22, 2016

Minium 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 NZD 1,000 thereafter)

Format:

Registered notes

Coupon:

3.50% semi-annual

Coupon payment dates:

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

Maturity date:

22 January 2021

Issue price:

99.754616%

Issue yield:

3.554% semi-annual

Listing:

Luxembourg Stock Exchange

Clearing systems:

NZ Clear and Euroclear

ISIN:

NZIBDDT010C0

Joint lead managers:

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

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.

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

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