AfDB said it made the decision to issue the new Kauri offering, its first in over six years, because conditions on the
The transaction was met with solid investor interest and priced the following day in line with guidance at a level of mid-swaps plus 20 basis points, which equates to 63 basis points over the New Zealand Government Bond (NZGB) of five per cent in
AfDB's first Kauri offering in over six years was able to draw in extra investor attention for its rarity value. However given the advanced stage of the Bank's funding programme for the year, the deal size was capped at a maximum of NZD 100 million from the outset.
A total of seven investors from Asia participated in the transaction with orders coming from central banks and official institutions (40 per cent), asset managers (40 per cent) and pension funds (20 per cent).
AfDB Group Treasurer Pierre Van Peteghem said, "One of the main pillars of the Bank's funding strategy is its ability to diversify its funding sources by responding to investor demand across a vast array of capital markets worldwide. After the first foray of the Bank in the domestic capital market of Nigeria this past July, the launch of this 5-year bond marks the return of the Bank into the so-called 'Kauri' market consisting of NZD denominated securities, registered in New Zealand and issued by foreign issuers.
Favorable market conditions and increased name recognition due to sustained marketing efforts allowed the Bank to successfully raise NZD 100 million in this market after a 6-year absence. Despite lower annual funding requirements than its peers, the Bank will continue to pursue its funding diversification strategy in Africa and elsewhere."
"The Kauri market is buoyant," said Salvatore Aloisi from
Most Popular Stories
- Cape Cod Building Mussel Industry
- Hollywood Eager to Grasp Hispanic Market
- Frightfully Fun Films Return for Halloween
- Sears Denies Store Closings, Layoffs Report
- Microsoft Beats Income Expectations
- Would Soccer Be Richer Without Small Clubs?
- Cloud Lifts Microsoft's Quarterly Results
- Pfizer Approves $11 Billion Buyback Plan
- IS Funded by Black Market Oil Sales, Racketeering
- Weekly Jobless Claims Rise but Remain Low