World Bank assesses New Zealand $ 1 billion benchmark over 7 years

Washington DC, April 28, 2021 – The World Bank (International Bank for Reconstruction and Development, IBRD rated Aaa / AAA) has priced a NZD 1 billion fixed rate global bond at 1.625% maturing May 10, 2028. The NZD bond has was launched with a minimum initial target size of NZD 300 million and was increased due to very strong investor demand. The size of this bond matches the largest supranational, sovereign and agency (SSA) bond issued last year, which was a 5-year NZD bond issued by the World Bank.

The bonds were distributed to a wide range of institutional investors in New Zealand (87%), Europe (8%) and Asia (5%). More than 20 investors participated, including commercial banks and asset managers. The operation priced at 99.625077% for a half-year yield of 1.682% pa. This equates to a 44.2 basis point deviation from the New Zealand government bond due May 2028.

The main managers of the transaction are Australia and New Zealand Banking Group Limited (ANZ), Bank of New Zealand (BNZ) and Commonwealth Bank of Australia (CBA).

“We are extremely grateful for the strong support from Kauri investors who helped us print the largest New Zealand dollar bond of its kind by a sub-Saharan African issuer.” mentionned Jingdong Hua, Vice President and Treasurer, World Bank. “Funding from financial markets supports the sustainable development goals of our member countries, including efforts to implement a green, resilient and inclusive recovery from the coronavirus pandemic.”

Investor distribution

By geography

By investor type

New Zealand

87%

Bank / Bank treasuries / Corporates

79%

Europe

8%

Asset managers / Insurance / Pension funds

21%

Asia

5%

Lead Manager Quotes

“Kudos to the World Bank on yet another exceptional Kauri Bond transaction, matching their own record tranche size for the market and setting a new benchmark for a 7-year offering. It was a timely deal, well received by the large investor base that the World Bank is attracting to the New Zealand dollar market ”. mentionned Glen Sorensen, union director, ANZ.

“The World Bank continued its strong Kauri issuance results in 2020 to follow suit with another exceptional deal in 2021. By completing a second consecutive $ 1 billion deal with Kauri in six months, we have saw both the market demand for New Zealand grade paper today, and the high esteem that investors have for the World Bank as an issuer ”, mentionned Mike Faville, Head of Capital Markets, BNZ.

“This result reflects the long-term commitment of the World Bank to a variety of benchmark markets and the appreciation of New Zealand and Australian investors for the key role the World Bank plays in the pursuit of sustainable development through the world,” mentionned Anthony Hermann, Executive Managing Director of Global Markets, CBA.

summary of transactions

Transmitter:

World Bank (International Bank for Reconstruction and Development, IBRD)

Issuer rating:

Aaa / AAA

Amount:

1 billion NZD

Format

Recorded Notes

Settlement date:

May 10, 2021

Due date:

May 10, 2028

Issue price:

99.625077%

Emission yield:

1.682% semi-annual

Coupon:

1.625% per annum payable semi-annually in arrears

Minimum denominations and minimum holding

1,000 NZD and their multiples (in New Zealand 750,000 NZD with multiples of 1,000 NZD thereafter)

SEO:

Luxembourg Stock Exchange

Compensation system

NZ Clear

Main managers:

Australia and New Zealand Banking Group Limited (ANZ), Bank of New Zealand (BNZ) and Commonwealth Bank of Australia (CBA)

IS IN:

NZIBDDT018C3

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. Established in 1944, it is the original member of the World Bank Group and operates as a global development cooperative owned by 189 countries. 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 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 sustainability bonds in international capital markets for more than 70 years to fund programs and activities that have 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 advance the Sustainable Development Goals (SDGs). The World Bank’s bonds are aligned with the Sustainable Bond Guidelines published by the International Capital Market Association and, as such, support the funding of a combination of green and social projects, programs and activities, that is ie “sustainable development” in IBRD member countries, as described in the World Bank Sustainable development obligations framework. The World Bank is also a member of the Executive Committee for the Principles of Green Bonds, Social Bonds and Sustainable Bonds. One of the main priorities of the World Bank’s engagement in capital markets is to establish strategic partnerships with investors to promote the importance of private sector finance in sustainable development. The World Bank Sustainability bond impact report describes how the World Bank engages with investors on the SDGs and raises awareness of specific development challenges.

Disclaimer

This press release does not constitute an offer to sell securities of the International Bank for Reconstruction and Development (“IBRD”), also known in financial markets as the “World Bank”. Any offering of World Bank securities will be made 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 the laws of New Zealand. World Bank securities may only be offered or sold in accordance with all of these laws.

The net proceeds from the sale of World Bank securities are used to finance sustainable development projects and programs in World Bank member countries without being committed or allocated to loans or financing of specific projects or programs. The returns on World Bank securities are not linked to the performance of any particular project or program.

Contact

Heike Reichelt, World Bank
+1 202 477 2880
[email protected]


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