The World Bank has successfully issued a New Zealand dollar 600 million 7-year fixed-rate bond, marking its return to the Kauri market after nearly two years. The bond, priced at 99.634768% to yield 4.311% per annum semi-annually, is due on July 23, 2032. This issuance follows an 18-month hiatus for any Sovereign, Supranational and Agency (SSA) issuer in the market.
Jorge Familiar, Vice President and Treasurer of the World Bank, expressed satisfaction with the transaction: “With this successful transaction, we are delighted to meet New Zealand dollar demand from domestic and international investors for high quality, liquid bonds.” He emphasized the importance of the New Zealand dollar market to the World Bank's strategy.
The bond was launched with an initial target size of NZD 300 million but was increased due to strong investor demand. ANZ and Commonwealth Bank of Australia acted as joint-lead managers for this transaction.
Simon Eckhoff from ANZ highlighted the significance of breaking the recent hiatus in the Kauri market: “It’s fantastic to see the World Bank break the recent hiatus in the Kauri market.” Desmond Fennell from Commonwealth Bank of Australia also congratulated the World Bank: “Congratulations to the World Bank for successfully reopening the Kauri market after 18 months of no issuance from SSA issuers.”
Investor interest was diverse, with significant participation from banks and corporates (78%) primarily based in New Zealand (86%).
The World Bank continues its mission as a global development cooperative owned by 189 nations. It provides financial products and advisory services aimed at ending extreme poverty and promoting shared prosperity globally.