WASHINGTON, DC, November 18, 2021 – The World Bank (International Bank for Reconstruction and Development, IBRD rated Aaa/AAA) priced a New Zealand dollar-denominated 1.5 billion 5-year 2.875% fixed-rate bond due November 30, 2026. The NZD benchmark bond was launched with an initial minimum target size of NZD 300 million and was increased due to strong investor demand. It is the largest non-government bond issued in the New Zealand dollar-market.
The deal priced at 99.861% to yield 2.905% p.a. semi-annual. This equates to a spread of 55 basis points over the New Zealand Government Bond due April 2027.
The joint-lead managers for the transaction are ANZ, BNZ and Westpac Banking Corporation.
“This is an excellent result. We are grateful for investors’ support for the World Bank’s sustainable development activities. The New Zealand dollar market helps diversify the World Bank’s funding sources which benefits our member countries,” said Jingdong Hua, Vice President and Treasurer, World Bank.
Investor Distribution
By Geography | By Investor Type | |||
New Zealand | 74% |
| Banks/Bank Treasuries | 74% |
Asia & Australia | 19% |
| Asset Managers/Insurance/Pension Funds | 16% |
EMEA | 7% |
| Central Banks/Official Institutions | 10% |
Joint Lead Manager Quotes
“Another year, another record for the World Bank in the NZD Kauri bond market. In fact, the World Bank set two records with this impressive transaction, as it took 2021’s annual issuance to a record volume for the market. The World Banks NZD $1 billion 5-year that came around this time last year seemed hard to top, but they have blown it out of the water with this incredible NZD $1.5 billion 5-year print. Congratulations to the World Bank team, this is a real testament to their status in the NZD market and ANZ was thrilled to have been involved,” said, Glen Sorensen, Director, Debt Syndicate, ANZ.
“Congratulations to the team at the World Bank for yet again setting a new benchmark in the NZD Kauri market with this record size deal print. Your dedication to issuing in our market continues to help the market develop, by expanding the boundaries of what can be achieved,” said Mike Faville, Head of Capital Markets, BNZ.
“The World Bank successfully navigated the headwinds of a volatile market leading up to transaction launch, ultimately achieving an exceptionally strong execution outcome. Notably, this was the largest ever Kauri transaction to come to market – the quality and breadth of the orderbook was impressive,” said Mat Carter, Director, Head of Debt Capital Markets & Syndicate, Westpac Banking Corporation, New Zealand.
Transaction Summary
Issuer: | World Bank (International Bank for Reconstruction and Development, IBRD) |
Issuer rating: | Aaa/AAA |
Amount: | NZD 1.5 billion |
Settlement date: | November 30, 2021 |
Minimum Subscription: | NZD 1,000 (within New Zealand, NZD 750,000) |
Minimum denominations and minimum holding: | NZD 1,000 and multiples thereof (within New Zealand, NZD 100,000 with multiples of NZD 1,000 thereafter) |
Format: | Registered notes |
Coupon: | 2.875% p.a. |
Coupon payment dates: | May 30 and November 30 in each year up to and including the Maturity Date |
Maturity date: | November 30, 2026 |
Re-offer price: | 99.861318% |
Re-offer yield: | 2.905% p.a. |
Listing: | Luxembourg Stock Exchange |
Clearing systems: | NZ Clear |
ISIN: | NZIBDDT019C1 |
Joint lead managers: | ANZ, BNZ and Westpac Banking Corporation |
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 is the original member of the World Bank Group and operates as a global development cooperative owned by 189 nations. The World Bank provides loans, guarantees, risk management products, and advisory services to middle-income and other creditworthy countries to support the Sustainable Development Goals and to end extreme poverty and promote shared prosperity. It also provides leadership to coordinate regional and global responses to development challenges. The World Bank has been issuing sustainable development bonds in the international capital markets for over 70 years to fund programs and activities that achieve a positive impact. More information on World Bank bonds is available at www.worldbank.org/debtsecurities.
World Bank bonds support the financing of programs that further the Sustainable Development Goals (SDGs). World Bank bonds are aligned with the Sustainability Bond Guidelines published by the International Capital Market Association and as such support the financing of a combination of green and social, i.e., “sustainable development” projects, programs and activities in IBRD member countries as described in the World Bank Sustainable Development Bond Framework. The World Bank is also a member of the Executive Committee of the Green Bond, Social Bond, and Sustainability Bond Principles. A key priority for the World Bank’s capital markets’ engagement is building strategic partnerships with investors to promote the importance of private sector financing in sustainable development. The World Bank’s Sustainable Development Bond Impact Report describes how the World Bank engages with investors on the SDGs and raises awareness for specific development challenges.
Disclaimer
Net proceeds of the bonds described herein are not committed or earmarked for lending to, or financing of, any particular projects or programs, and returns on the bonds described herein are not linked to the performance of any particular project or program.
This press release is not an offer for sale of securities of the International Bank for Reconstruction and Development ("IBRD"), also known in the capital markets as "World Bank". Any offering of World Bank securities will take place solely on the basis of the relevant offering documentation including, but not limited to, the prospectus, term sheet and/or final terms, as applicable, prepared by the World Bank or on behalf of the World Bank, and is subject to restrictions under the laws of several countries, including under the laws of New Zealand. World Bank securities may not be offered or sold except in compliance with all such laws. The World Bank Sustainable Development Bond Framework and the information set forth therein are not a part of, or incorporated by reference into, the offering documentation.
Contact
Heike Reichelt, Head of Investor Relations and Sustainable Finance, World Bank Treasury
debtsecurities@worldbank.org
