World Bank prices first global dual tranche New Zealand dollar bonds
The World Bank has priced a New Zealand dollar-denominated dual tranche of NZD1 billion ($702.6 million) and NZD300 million ($210.8 million) fixed-rate global Sustainable Development Bond transactions.
The 5.5-year NZD1 billion bond offers a coupon of 0.75% p.a. payable semi-annually with a 10 June, 2026 maturity and has an issue price of 99.967736% to yield 0.756% (semi-annual). This equates to a spread of 43.1 basis points over the 2.75% New Zealand Government Bond due 15 April, 2025.
The ten-year NZD300 million bond offers a coupon of 1.25% p.a. payable semi-annually with a 10 December, 2030 maturity and has an issue price of 99.448671% to yield 1.309% (semi-annual). This equates to a spread of 41.4 basis points over the 1.50% New Zealand Government Bond due 15 May, 2031.
The joint-lead managers for the transaction are ANZ Bank New Zealand Limited (ANZ), Bank of New Zealand (BNZ), and Commonwealth Bank of Australia.
The benchmark lines were launched with an initial minimum target size of NZD200 million and NZD100 million respectively and increased due to very high investor demand. The new 5.5-year is the World Bank’s largest-ever NZD benchmark bond and the largest of any Sovereign, Supranational, and Agency issuer of any maturity in a single offering in the Kauri market.
The bonds were distributed to a broad range of institutional investors both domestically and internationally; 89% with New Zealand and 11% with international investors for the 5.5-year maturity, and 92% with New Zealand and 8% with international investors for the ten-year maturity. Both tranches were distributed among asset managers, bank treasuries and official institutions.
