Washington DC, February 12, 2020 – 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.
Investor Distribution
| By Geography | By Investor Type | ||
| New Zealand | 79% | Banks/Bank Treasuries/Corporates | 80% |
| Asia | 20% | Asset Managers / Insurance / Pension Funds | 20% |
| Europe | 1% | ||
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.
