KEY POINTS:
What is it called and what sort of savings product is it?
World Bank Global Bonds.
What is the company behind it?
The offer is being made by the International Bank of Reconstruction and Development (IBRD) and the lead manager for the offer in New Zealand is Westpac. The IBRD, part of the World Bank, is a global development co-operative owned by 185 member countries including New Zealand. Its goal is to help countries achieve equitable and sustainable economic growth.
Who is the target market?
People wanting a good, medium-term, fixed-interest rate.
What return does it offer?
The rate isn't yet set but is likely to be around 7.2 per cent.
When was it launched?
The offer opened on June 23 and closes on July 11.
What other products is it like or is it competing with?
The notes and their issuer are relatively unique, and certainly doesn't have a competitor. In terms of competition for dollars, it is up against Marac's bond offer that started last week.
Is it long term, short term or medium term?
Medium term and its maturity date is July 16, 2012.
What is the unique selling point of these bonds?
It's not often you get an investment from an organisation such as this in New Zealand. The offer has a good interest rate, has a Standard & Poor's AAA rating and can be viewed as an investment for good.
How strong a stomach do you need for it?
Mild.
What's the hitch?
The biggest risk around these notes is they have no liquidity. Investors will be heartened to see the IBRD cannot be placed in liquidation or subjected to any other insolvency proceedings.
www.sharechat.co.nz
