WASHINGTON, D.C., July 11, 2025 - The World Bank (International Bank for Reconstruction and Development, IBRD rated Aaa/AAA) priced a New Zealand dollar 600 million 7-year 4.25% fixed-rate bond due July 23, 2032. This oversubscribed bond, the World Bank's first in the Kauri market after a nearly two-year hiatus for the World Bank and 18 months for any Sovereign, Supranational and Agency (SSA) issuer, was launched with an initial minimum target size of NZD 300 million and was increased due to strong investor demand.
The deal priced at 99.634768% to yield 4.311% p.a. semi-annually. This equates to a spread of 9.85 basis points over the New Zealand Government Bond due May 15, 2032.
The joint-lead managers for the transaction are ANZ, and Commonwealth Bank of Australia.
"With this successful transaction, we are delighted to meet New Zealand dollar demand from domestic and international investors for high quality, liquid bonds," said Jorge Familiar Vice President and Treasurer, World Bank. "The World Bank cultivates relationships with a globally diverse investor base, including investors in New Zealand, which helps it raise funds efficiently across the globe to finance its sustainable development activities for loans, guarantees and other financial products.The New Zealand dollar market is strategically important to the World Bank, and our ongoing investor outreach and continuous issuance demonstrate our commitment to supporting liquidity in the market."
Investor Breakdown by Type
By Geography |
By Investor Type |
||
New Zealand |
86% |
Banks/Bank Treasuries/Corporates |
78% |
Asia & Australia |
12% |
Asset Managers/Insurance/Pension Funds |
22% |
Europe, Middle East, Africa |
2% |
Lead Manager Quotes
"It's fantastic to see the World Bank break the recent hiatus in the Kauri market. The World Bank has shown that their ongoing investor engagement and diligent approach to the market provides a strong foundation for market access. It was particularly great to see an enhanced breadth of domestic participation given their investor outreach activities," said, Simon Eckhoff, Director, Syndicate & Debt Capital Markets, ANZ.
"Congratulations to the World Bank for successfully reopening the Kauri market after 18 months of no issuance from SSA issuers. The World Bank timed the transaction well, taking advantage of improving pricing relativities. The deal attracted a strong and diverse orderbook, with broad investor participation, which is a testament to the strength of the following of the World Bank investor base. Several supportive dynamics contributed to the outcome including the scarcity of recent Kauri supply, tightening secondary spreads, a stable basis swap environment and renewed demand for NZD SSA bonds. CBA is proud to have supported the World Bank on this important transaction," said, Desmond Fennell, Head of Capital Markets and Syndicate, Commonwealth Bank of Australia
Transaction Summary
Issuer: |
World Bank (International Bank for Reconstruction and Development, IBRD) |
Issuer rating: |
Aaa /AAA |
Amount: |
NZD 600,000,000 |
Settlement date: |
July 23, 2025 |
Maturity date: |
July 23, 2032 |
Issue price: |
99.634768% |
Issue yield: |
4.311% p.a. semi-annual |
Denomination: |
NZD 1,000 and multiples thereof (within New Zealand, NZD 100,000 with multiples of NZD 1,000 thereafter) |
Coupon: |
4.250% p.a. semi-annual (fixed) |
Coupon payment dates: |
January 23 and July 23 each year |
ISIN: |
NZIBDDT023C3 |
Listing: |
Luxembourg Stock Exchange |
Clearing system: |
NZClear |
Lead managers: |
ANZ Bank New Zealand Limited (ANZ), Commonwealth Bank of Australia (CBA) |
About the World Bank
