World Bank Prices NZD 550 Million 7-Year Sustainable Development Bond

The World Bank (International Bank for Reconstruction and Development, IBRD rated Aaa/AAA) has priced a New Zealand dollar-denominated 550 million 7-year 0.625% fixed-rate global bond due September 24, 2027. The benchmark bond was launched with an initial minimum target size of NZD 150 million and was increased due to strong investor demand.

The deal priced at 99.836019% to yield 0.649% p.a. semi-annual. This equates to a spread of 44.7 basis points over the New Zealand Government Bond due April 2027. This is the World Bank's largest-ever NZD benchmark bond and the largest of any SSA issuer with a maturity greater than 5-years.

The bonds were distributed to a broad range of institutional investors in New Zealand (88%) and in Asia and Australia (11%). Around 20 investors participated in the transaction including commercial banks, asset managers, and official institutions.

The joint-lead managers for the transaction are ANZ Bank New Zealand Limited (ANZ), Bank of New Zealand (BNZ), and TD Securities.

"We thank investors for their investment in our World Bank Sustainable Development Bonds and are very pleased with this excellent result. We value the ongoing support for the World Bank's mission to improve lives by ending extreme poverty and creating more inclusive societies in our member countries," said Jingdong Hua, Vice President and Treasurer, World Bank.

Investor Distribution

Joint Lead Manager Quotes

"The World Bank once again managed to print the largest Kauri transaction in the market….since the last World Bank Kauri transaction. This time the tenor was a little longer than we typically see in the market, and it proved attractive to a diverse range of investors. NZD550million for a 7-year maturity is a tremendous result, and ANZ was thrilled to have been involved," said Glen Sorensen, Director, Syndicate, ANZ.

"This transactions highlights the market leading position that World Bank holds in the Kauri market - both in achieving such a strong outcome in a 7-year tenor, a relatively unusual tenor in this market, and also that this marks their third transaction in 2020 with a total issuance of NZD$1.6 billion. A willingness to extend their curve proved engaging for investors seeking tenor and extra yield, and BNZ was delighted to have been involved," said Mike Faville, Head of Capital Markets, BNZ.

"This transaction marks a very successful return by the World Bank to the Kauri market and is their third Kauri transaction for 2020. The strong outcome reflects the increasing interest we have been seeing from investors to extend out the curve in the current low rate environment. It also clearly speaks to the strong following that the World Bank has cultivated across the investor base over many years," said Apoorva Tandon, Head of Asia Syndicate, TD Securities.

Transaction Summary

With annual issuances between US$55-US$65 billion, World Bank bonds support the financing of programs that further the Sustainable Development Goals. World Bank bonds are aligned with the Sustainability Bond Guidelines published by the International Capital Market Association. The World Bank is also a member of the Executive Committee of the Green Bond and Social Bond Principles. A key priority for the World Bank's capital markets' engagement is building strategic partnerships with investors to promote the importance of private sector financing for sustainable development.

Disclaimer

This press release is not an offer for sale of securities of the International Bank for Reconstruction and Development ("IBRD"), also known in the capital markets as "World Bank". Any offering of World Bank securities will take place 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 under the laws of New Zealand. World Bank securities may not be offered or sold except in compliance with all such laws.

The net proceeds from the sale of World Bank securities are used to finance sustainable development projects and programs in World Bank's member countries without being committed or earmarked for lending to, or financing of, any particular projects or programs. Returns on World Bank securities are not linked to the performance of any particular project or program.

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 created in 1944. It operates as a global development cooperative owned by 189 nations. It provides its members with financing, expertise and coordination services so they can achieve equitable and sustainable economic growth in their national economies and find effective solutions to pressing regional and global economic and environmental problems. The World Bank Group has two main goals: to end extreme poverty and promote shared prosperity. The World Bank (IBRD) seeks to achieve them primarily by providing loans, risk management products, and expertise on development-related disciplines to its borrowing member government clients in middle-income countries and other creditworthy countries, and by coordinating responses to regional and global challenges. The World Bank has been issuing bonds in the international capital markets for over 70 years to fund its sustainable development activities and achieve a positive impact. Information on bonds for investors is available on the World Bank Treasury website: www.worldbank.org/debtsecurities.