IFC Kauri bond priced at NZ$300 mln

SYDNEY: The International Finance Corporation (IFC) said on Friday it has priced NZ$300 million ($224 million) of five-year global Kauri bonds.

Kauri bonds are bonds sold by foreign companies in New Zealand. The IFC's debut Kauri issue priced at 24 basis points under the New Zealand swap rate, within the initial 24 to 25 bps pricing range.

The IFC said the proceeds will be swapped into floating rate US dollar funds. The bonds were placed both locally and internationally among banks and fund managers, it added. IFC is the private arm of the World Bank that focuses on investing in emerging market economies.

For the fiscal year ending June 30, 2008, it has a planned borrowing programme of up to US$5 billion equivalent. The deal details are as follows: Issuer: International Finance Corporation (IFC) Facility: Global fixed rate Kauri bonds Amount issued: NZ$300 million Maturity: August 23, 2012 Set date: Aug. 23 Coupon: 7.75% Yield: 7.76% Margin: -24 bps under swap or +82 bps over the New Zealand government bond Issue price: 99.959202 Lead(s): ANZ and Bank of New Zealand Co-lead(s): TD Securities Issue ratings: triple A ($1=NZ$1.34)