LGFA has successfully issued a EUR 41 million, 20-year bond through a private placement under its Euro Medium Term Note (EMTN) Programme—the longest-dated bond to date and the first foreign-currency private placement.
Placed with a group of European investors, the bond matures on 5 November 2046 with a 4.143% coupon and was issued at a margin of +63bps to EUR mid swap.
The transaction marks an important strategic step, establishing a longer-dated funding point from which LGFA can offer loans to its council, CCO, and water CCO members beyond the current longest loan maturity of April 2037.
LGFA remains focused on establishing benchmark bond lines in AUD, CHF, EUR, NZD, and USD. This private placement complements that strategy by extending the LGFA funding and onlending curve.
LGFA has NZ$27.6 billion equivalent of long- and short-term debt outstanding, with 65% currently sourced in New Zealand dollars and 35% in foreign currencies. All foreign currency borrowing is hedged back into New Zealand dollars.
UBS acted as sole lead manager for the transaction.