Washington, DC, July 10, 2009 – The World Bank (International Bank for Reconstruction and Development, IBRD) rated Aaa/AAA has issued its third New Zealand Dollar Kauri Global Bond today. The NZD 300 million 5-yr bond is a syndicated transaction lead-managed by ANZ National Bank and TD Securities.
The World Bank announced the transaction on July 9, 2009. The bond is the Kauri market’s largest new issue this year, and its timing was aimed at offering a new investment opportunity to an upcoming wave of New Zealand dollar redemptions in the Euro-Kiwi, Uridashi and domestic market. Regional distribution was as follows: Domestic: 55%; Asia: 31%; US: 11%; Europe: 3%. There were 19 investors who participated in the transaction.
“With this bond, the World Bank adds another point to its existing Kauri curve having already brought two issues to the market. World Bank was the first to issue when the Kauri market opened up to SSA borrowers in July 2007 and is delighted to revisit this market again in 2009,” said Andrea Dore, Lead Financial Officer at the World Bank.
“We are thrilled to have this opportunity to work with the World Bank on this transaction. With the significant record redemption flows this month – particularly on July 15th – we collectively felt that the timing was right to consider launching a 5-year transaction for such a premier issuer. Given the broad-based demand for this issue – in particular from domestic investors in New Zealand and international investors in Asia – we would not be surprised to see further supply from other supranational and sovereign borrowers. It is nice to see the World Bank again at the forefront of helping to re-establish a relatively new market.” said Peter Dalton, Vice President and Director, Debt Capital Markets at TD Securities in Sydney.
“We are delighted to be involved in the return of the World Bank to the Kauri Market. The transaction has been well received and marks another significant transaction for the market, which has benefited from the World Bank’s support after issuing the first SSA Kauri two years ago,” said Dean Spicer, Head of Capital Markets NZ, at ANZ in Wellington.
Summary terms and conditions for the new Kauri* issue:
Amount: NZD 300 million*
Settlement date: July 24, 2009
Maturity Date: December 15, 2014
Issue price/re-offer price: 99.417301%
Yield: 5.50% semi-annual (NZGB Apr 2015 + 37 basis points)
Coupon: 5.375% semi-annual
Minimum Subscription: NZ$1,000, within New Zealand NZ$500,000
Denomination: NZ$1,000 and multiples thereof; within New Zealand, NZ$100,000 min. with multiples of NZ$1,000 thereafter
Format: Registered notes
Listing: Luxembourg
Clearing Systems: Austraclear NZ, Euroclear and Clearstream
*On December 2, 2009, IBRD agreed to increase the nominal amount of the bond by the issue of a second tranche for an amount of NZD 175 million with an issue price of 99.287925% (settlement date: December 15, 2009). On December 8, 2009, IBRD agreed to increase the nominal amount of the bond by the issue of a third tranche for an amount of NZD 125 million with an issue price of 98.966246% (settlement date: December 15, 2009). On February 3, 2010, IBRD agreed to further increase the nominal amount of the bond by the issue of a fourth tranche for an amount of NZD 300 million with an issue price of 99.488259% (settlement date: February 12, 2010). On July 20, 2010, IBRD agreed to further increase the nominal amount of the bond by the issue of a fifth tranche for an amount of NZD 125 million with an issue price of 101.649200% (settlement date: July 29, 2010).
The new total outstanding principal amount is NZD 1.025 billion.
**A Kauri bond is a bond issued by a foreign issuer in the New Zealand domestic market.
The World Bank is a global development cooperative owned by its member countries. Its purpose is to help its members achieve equitable and sustainable economic growth in their economies and to find solutions to regional and global problems in economic development and environmental sustainability, all with a view to reducing poverty and improving standards of living. The International Bank for Reconstruction and Development (IBRD), rated Aaa/AAA (Moody’s/S&P) is owned by 186 countries. It is the oldest and largest entity in the World Bank Group and provides its members with financing, risk management products, and other financing services, as well as specialized expertise and strategic and convening services requested by its member countries. To fund this activity, IBRD has been issuing debt securities in the international capital markets for 60 years. The World Bank is one of the most recognized and innovative borrowers in the international capital markets. The World Bank designed and issued the first global bond in 1989. Information on the World Bank, its global bonds and a variety of other offerings available for investors is on the World Bank Treasury website (www.worldbank.org/debtsecurities).
