World Bank Prices NZD 950 Million Sustainable Development Bond

WASHINGTON  –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

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