World Bank Prices 600 Million New Zealand Dollar Bond for Sustainable Development
The World Bank (International Bank for Reconstruction and Development, IBRD rated Aaa/AAA) has priced a NZD 600 million 1.375% fixed-rate global bond due February 19, 2025. The Kauri bond was launched with an initial minimum target size of NZD 200 million and was increased due to very strong investor demand. The deal priced at 99.591577% to yield 1.46% p.a. semi-annual. This equates to a spread of 40 basis points over the New Zealand Government Bond (NZGB) due April 2025.
The bonds were distributed to a broad range of institutional investors in New Zealand (79%), Asia (20%), and Europe (1%). Around 20 investors participated including commercial banks and asset managers.
The joint-lead managers for the transaction were the Australia and New Zealand Banking Group (ANZ) and Bank of New Zealand (BNZ).
“We are extremely grateful for the strong support from Kauri investors, who through this transaction help the World Bank advance important sustainable development projects and programs in its member countries,” said Andrea Dore, Head of Funding, World Bank Treasury.
By Investor Type
Asset Managers / Insurance / Pension Funds
Joint Lead Manager Quotes:
“The World Bank joins the Kauri primary market after the market’s lean start to 2020 and prints what is an impressive volume in Kauri for any month of any year. NZ$600m is a great result, welcomed by a diverse range of investors and ANZ was thrilled to have been involved in the transaction,” said Glen Sorensen, Director, Syndicate, ANZ.
“The World Bank’s NZ$600 million transaction was timed very nicely to take advantage of their existing maturity. The end result was a strong and diverse group of investors that spanned geographical and investor classes,” said Mike Faville, Head of Debt Capital Markets, BNZ.
World Bank (International Bank for Reconstruction and Development, IBRD)
NZD 600 million
February 19, 2020
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)
1.375% p.a. semi-annual
Coupon payment dates:
February 19 and August 19 in each year, commencing with a full first
coupon payable on August 19, 2020 (subject to the Business Day
Convention), up to and including the Maturity Date
February 19, 2025
1.46 % p.a. semi-annual
Luxembourg Stock Exchange
Joint lead managers:
ANZ Bank New Zealand Limited (ANZ), Bank of New Zealand (BNZ)