NZX Announcement
27 February 2020
LGFA has released to shareholders its 2020-2021 Draft Statement of Intent (SOI) as required under the Local Government Act 2002.
This is a draft for shareholder consultation and the SOI will be finalised by 30 June 2020.
A copy is available on the LGFA website www.lgfa.co.nz
The Draft SOI contains the following statement in Section 4 regarding the LGFA Borrowing Programme
“The above table assumes gross issuance of LGFA bonds per year of $2.28 billion (2021/22), $1.85 billion (2022/23) and $1.9 billion (2023/24), however the issuance volume will be determined by LGFA at the relevant time by reference to factors including refinancing of existing borrowing by councils and (if applicable) council-controlled organisations, new borrowing by councils and (if applicable) council-controlled organisations and LGFA’s own borrowing requirements for liquidity purposes. No decision has been made as to final issuance volume at this point and will depend upon market conditions.”
Regarding the current 2019/20 financial year borrowing programme
For the remainder of the 2019/20 financial year LGFA has scheduled bond tenders for 11th March, 8th April and 3rd June 2020.
LGFA may consider replacing a tender or tenders with a syndicated issue and issuance volume will be determined by LGFA at the relevant time by reference to factors including refinancing of existing loans borrowing by councils and council-controlled organisations, new borrowing by councils and council-controlled organisations and LGFA’s own borrowing requirements for liquidity purposes. No decision has been made as to final issuance volume at this point and will depend upon market conditions. Any overfunding by LGFA in the 2019/20 financial year could be used to reduce the gross issuance requirement in the 2020/21 financial year.
ENDS
Released on behalf of NZ Local Government Funding Agency Limited by Mark Butcher, Chief Executive.
Telephone +64 4 974 6744
Email mark.butcher@lgfa.co.nz
Website lgfa.co.nz