Accessing private investors and adding scale to tangible impact investing motivated World Bank to bring its new sustainable growth bond. The issuer and its lead say the deal presented a unique opportunity to engage new investors on the UN sustainable development goals (SDGs) and World Bank’s bond issuance.
Kauri issuance rebounded in May-June as more than NZ$2.6 billion (US$1.7 billion) priced, including a rare 10-year transaction of record volume for the tenor. Technical demand drivers are at play but intermediaries suggest positive conditions could remain even as a supply gap closes in the second half of 2020.
Normalisation in the cross-currency market opened a New Zealand dollar funding opportunity for World Bank, as part of the borrower’s record funding drive in response to the COVID-19 crisis.
On 12 May, World Bank (AAA/Aaa) released a book update on its January 2024 Kauri increase after launching a day earlier. The minimum volume has been increased to NZ$250 million (US$151.9 million) from NZ$150 million, as pricing remains unchanged at 41 basis points area over mid-swap. The book is in excess of NZ$270 million, with the issuer open to further upsize. ANZ and BNZ are leading.
On 11 May, World Bank (AAA/Aaa) launched a minimum NZ$150 million (US$92.1 million) increase to its January 2024 Kauri bond. The forthcoming deal is being marketed at 41 basis points over mid-swap, with pricing expected on the day after launch. ANZ and BNZ are leading.
SSA Yearbook 2019
The annual guide to the world's most significant supranational, sovereign and agency sector issuers.