World Bank Prices Record NZD 1.5 Billion 5-Year Sustainable Development Bond

WASHINGTON – 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.

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