09 December 2019
LGFA's shareholders approved amendments to its foundation policies during its annual meeting on 21 November 2019. A copy of the amended foundation policies is attached.
The principal changes to the foundation policy relate to:
• greater treasury policy limits given the increase in the size of LGFA's balance sheet;
• permitting LGFA to lend money through facility arrangements (in addition to lending through debt securities); and
• permitting LGFA to lend to council-controlled organisations, subject to certain matters being undertaken.
Notwithstanding the amended foundation policy, as at the date of this announcement:
• LGFA only lends to local authorities through debt securities, not through committed facility agreements; and
• LGFA does not and will not lend to council-controlled organisations until certain matters have been undertaken, including appropriate amendments to its existing lending documents.
Released on behalf of NZ Local Government Funding Agency Limited by Mark Butcher, Chief Executive.
Telephone +64 4 974 6744