WASHINGTON, DC, June 13, 2023 –The World Bank (International Bank for Reconstruction and Development, IBRD rated Aaa/AAA) has priced a New Zealand dollar 950 million 3-year 5.00% fixed-rate bond due June 22, 2026. The benchmark bond was launched with an initial minimum target size of NZD 250 million and was quickly increased due to exceptionally strong investor demand.
The NZD 950 million Sustainable Development Bond represents the largest 3-year transaction in the Kauri market to date and supports sustainable development projects and programs in World Bank member countries.
The deal offers a spread versus mid-swaps of +15 basis points, equivalent to a spread of 51.2 basis points over the New Zealand Government Bond due May 2026 and has a semi-annual yield of 5.097%.
The joint-lead managers for the transaction are Australia and New Zealand Banking Group, Bank of New Zealand, and Westpac.
“This transaction is yet another successful return to the NZD market,” said Jorge Familiar, Vice President and Treasurer, World Bank. “The size and broad global distribution shows that both domestic and international investors appreciate the opportunity to invest in liquid, high quality NZD assets through World Bank Sustainable Development Bonds.”
Investor Distribution
By Geography | By Investor Type | |||
New Zealand | 76% |
| Banks/Bank Treasuries | 67% |
Asia | 18% |
| Asset Managers/Insurance/Pension Funds | 17% |
Others | 6% |
| Official Institutions | 16% |
Joint Lead Manager Quotes
“The strong investor demand from both local and offshore investors was aided by a number of tailwinds, notably the recent lull in high-grade issuance, recent redemptions and, of course, World Bank’s gravitas as a NZD issuer. An impressive return to the Kauri market,” said Simon Eckhoff, Director, Capital Markets, ANZ.
“Once again, the World Bank has shown leadership in the Kauri market with a large 3-year transaction that will provide renewed confidence to the market,” said Mike Faville, Head of Capital Markets, BNZ.
“Congratulations to the World Bank in respect of this highly successful 3-year Kauri NZ$950m Sustainable Development Bond. This transaction contributes to the depth and development of the NZD sustainable bond market, and again highlights World Bank's on-going commitment to the Kauri market. Westpac was delighted to be involved,” said Mat Carter, Head of DCM & Syndicate, Westpac.
Transaction Summary
Issuer: | World Bank (International Bank for Reconstruction and Development, IBRD) |
Issuer rating: | Aaa/AAA |
Amount: | NZD 950,000,000 |
Settlement date: | June 22, 2023 |
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: | 5.00% per annum, payable semi-annually |
Maturity date: | June 22, 2026 |
Re-offer price: | 99.733289% |
Re-offer yield: | 5.097% p.a. semi-annual |
Listing: | Luxembourg Stock Exchange |
Clearing systems: | NZ Clear |
ISIN: | NZIBDDT022C5 |
Joint lead managers: | ANZ, BNZ, Westpac |
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.[SKK1]
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.
Disclaimers
Net proceeds of the bonds described herein are not committed or earmarked for lending to, or financing of, any particular projects or programs. Payments on the bonds described herein are not funded by 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 World Bank’s Sustainable Development Bond Impact Report 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
