World Bank Issues NZD 550M Sustainable Dev Bond

WASHINGTON, DC, January 18, 2023 - The World Bank (International Bank for Reconstruction and Development, IBRD rated Aaa/AAA) has priced a New Zealand dollar 550 million 5-year 4.625% fixed-rate bond due February 2, 2028. The benchmark bond was launched with an initial minimum target size of NZD 300 million and was increased due to strong investor demand.

The deal priced at 99.801389% to yield 4.67% p.a. semi-annual. This equates to a spread of 54.5 basis points over the New Zealand Government Bond due May 15, 2028.

The joint-lead managers for the transaction are Bank of New Zealand, Commonwealth Bank of Australia, The Toronto-Dominion Bank.

"We are extremely appreciative of New Zealand dollar investors that supported today's Kauri issuance," said Andrea Dore, Head of Funding, World Bank. "Funding from diverse global investor groups and various currencies and countries helps the World Bank to efficiently support its member countries."

Investor Distribution

Joint Lead Manager Quotes

"This transaction marked a successful return to the Kauri market by the World Bank as it delivered the first 5-year issue in 2023, and BNZ were delighted to be involved. It was pleasing to see this tenor engage to a diverse range of investors, reflective of the strong support that the World Bank has developed in the investor community through regular ongoing issuance in the Kauri market over the years. Congratulations!" said Mike Faville, Head of Capital Markets, BNZ.

"Congratulations to the World Bank team on another well-timed transaction in the Kauri market. The strength of the World Bank name continues to attract broad reception across the New Zealand dollar investor base as reflected by demand from both onshore and offshore. CBA is delighted to have partnered alongside the World Bank team to support its overarching mission towards financing sustainable development, projects, programs and activities in its member countries," said Danny Keene, Director - Debt Capital Markets, Commonwealth Bank of Australia.

"A very successful trade from the World Bank team in New Zealand dollar market today, printing a first 5- year benchmark of 2023. Kauri investors continue to reward the World Bank for its longstanding presence and strategic approach to the market. The deal received strong investor take up and a high quality orderbook, allowing to upsize the transaction to New Zealand dollar 550 million. Well thought out strategy and swift execution played a crucial role in today's success. TD Securities is honored to have been entrusted to work on such an important mandate and we are excited for continued partnership in the future," said Yuriy Popovych, Director, Fixed Income Syndicate, TD Securities.

Transaction Summary