World Bank capped an active year in the Kauri market with a record-breaking deal on 26 November. The issuer pursued a dual-tranche strategy designed to bring in bids from multiple investor bases, while a recent backup in New Zealand dollar yield produced a further demand bump.
On 25 November, World Bank (AAA/Aaa) launched a dual-tranche Kauri transaction, offered in 5.5- and 10-year tenors. Minimum volume for the tranches are NZ$200 million (US$139.5 million) and NZ$100 million, with price guidance at 23 and 39 basis points area over mid-swap. ANZ, BNZ and Commonwealth Bank are leading. Pricing is expected on the day after launch.