Washington, DC, August 10, 2007 — IFC,
a member of the World Bank Group, today launched its first-ever New Zealand
dollar Kauri bond, issuing a five-year NZ$300 million note to raise funds
that will support IFC’s work to reduce poverty by strengthening the private
sector in developing countries.
The notes, which have a final maturity of August 23, 2012, carry a coupon
rate of 7.75% percent a year (payable semi-annually) and were priced today
to yield 82 basis points over the benchmark New Zealand government bond.
A Kauri bond is a New Zealand dollar-denominated bond issued by a foreign
issuer and can be sold to both domestic and international investors.
The proceeds of the issue were swapped into floating rate U.S. dollar funds
and will be used to finance IFC’s operations of providing loans, equity,
structured finance and risk management products, and advisory services
to private enterprises in developing countries.
The issue, launched under IFC’s Australia/New Zealand dollar medium-term
note program, was placed both locally and internationally among high-quality
banks and fund managers. IFC achieved its objectives of reaching an untapped
investor base and diversifying its currency funding basis.
“IFC is delighted with the uptake of the issue. We seek diversification
opportunities to fund IFC’s growing work in client countries,” said IFC
Deputy Treasurer John Borthwick. "We had seamless execution and a
very welcome response form investors based in New Zealand."
The joint lead managers are ANZ Institutional and Bank of New Zealand.
Co-lead manager is TD Securities. The bonds will qualify as securities
under the revised Reserve Bank of New Zealand Overnight Reverse Repo Facility
as announced on July 17, 2007.
IFC’s funding activities focus on two key goals: raising and securing
funds to meet IFC’s annual funding requirements as well as stimulating
growth in emerging capital markets by issuing bonds in local currencies.
For the fiscal year ending June 30, 2008, IFC has a planned borrowing program
of up to US$5 billion equivalent. IFC’s long-term debt is rated triple-A
by both Standard & Poor’s and Moody’s Investors Service.
IFC, a member of the World Bank Group, fosters sustainable economic growth
in developing countries by financing private sector investment, mobilizing
capital in the international financial markets, and providing advisory
services to businesses and governments. IFC’s vision is that poor people
have the opportunity to escape poverty and improve their lives. In FY06,
IFC committed $8.3 billion, including syndications, to 284 investments
in 66 developing countries. For more information, please visit www.ifc.org.