IFC Raises Record NZD 1 Billion in Landmark Kauri Bond Return

The bond was priced at 14.35 basis points above the New Zealand Government Bond carrying a 3.5% coupon and maturing on April 14, 2033.

The International Finance Corporation has returned to New Zealand's Kauri bond market with a record NZD 1 billion transaction, marking its largest issuance in the market and giving the World Bank Group member a significant source of long-term funding for private sector development in emerging economies. Priced on September 8, 2026, the seven-year bond carries a 4.60% annual coupon, paid semi-annually, and will mature on September 21, 2033, expanding IFC's New Zealand dollar funding curve after an absence from the market since December 2023.

Strong Investor Demand Delivers a Billion-Dollar Benchmark

The bond was priced at 14.35 basis points above the New Zealand Government Bond carrying a 3.5% coupon and maturing on April 14, 2033. Investors received a re-offer yield of 4.616%, with the bond issued at a re-offer price of 99.905217% and settlement scheduled for September 21, 2026. Its expected ratings of AAA from S&P Global Ratings and Aaa from Moody's Investors Service gave investors access to a highly rated international development institution during a busy period for New Zealand's domestic bond market.

Demand came mainly from bank treasuries, which received 92% of the issuance, followed by central banks and official institutions with 5%, and asset managers, insurers and pension funds with 3%. New Zealand investors accounted for 95% of the geographical distribution, showing that local institutions provided the foundation for the record transaction, with investors from Europe, the Middle East and Africa taking 5% and a small Asian allocation reported at 0.2%.

New Zealand Funding Supports Development Beyond Its Borders

World Bank Group Vice President and Treasurer Jorge Familiar described the NZD 1 billion benchmark as an important milestone for IFC's funding programme, noting that the strength of domestic investor participation reflected both the depth of the Kauri market and the relationships IFC has built with New Zealand institutions. Raising money across different currencies and investor markets gives IFC greater flexibility to finance businesses, infrastructure and job-creating investments in developing economies without relying too heavily on any single funding source.

The bond was issued through IFC's Australian and New Zealand Debt Issuance Programme and became the first post-summer Kauri transaction from a triple-A-rated issuer. ANZ Bank New Zealand, Commonwealth Bank of Australia and Westpac Banking Corporation jointly led the deal, with representatives from all three banks pointing to the scale of the issuance, competitive pricing and resilience of investor demand despite uncertainty surrounding global interest rates.

Record Deal Strengthens IFC's Global Funding Strategy

IFC regularly raises funds through public bond markets, private placements and thematic instruments such as green and social bonds, creating a broad financing base for its work with private companies in emerging markets. Local-currency issuance plays a distinct role in this strategy because it can deepen domestic capital markets, attract new categories of investors and support investments that reduce currency-related risks for borrowers.

The success of this seven-year Kauri bond gives IFC a stronger presence in the New Zealand dollar market and demonstrates that investors remain willing to support highly rated development-focused issuers at substantial scale. For New Zealand institutions, the transaction provides a high-quality fixed-income asset with a defined return profile; for IFC, the proceeds contribute to a wider funding pool that can be directed toward private sector projects capable of expanding services, creating jobs and strengthening economic opportunity across developing countries.