NZX Announcement
11 May 2021

LGFA launches fixed rate bond offer and cancels 12 May 2021 tender

New Zealand Local Government Funding Agency Limited (LGFA) announced today that it is offering NZ$300 million unsecured, unsubordinated, fixed rate bonds with a maturity date of 15 May 2031 (Bonds) to institutional and New Zealand retail investors, with the ability to accept unlimited oversubscriptions at LGFA's discretion.

The Coupon/Interest Rate will be set by LGFA, taking into account the Issuance Yield, on the Rate Set Date (12 May 2021). LGFA expects the Coupon/Interest Rate to be 2.25% per annum. The Issuance Yield will be the sum of the Margin and the Base Rate on the Rate Set Date. The Margin will be set following a bookbuild on 12 May 2021. The Coupon/Interest Rate, Issuance Yield, Margin and Issue/Settlement Price will be announced by LGFA via NZX shortly thereafter.

The indicative Margin range for the Bonds is 0.35% to 0.38% per annum.

The offer will close on 12 May 2021 following the bookbuild, with the Bonds expected to be issued on 17 May 2021.

LGFA does not intend to offer any additional tranches of the Bonds until its August 2021 tender, currently scheduled for the week commencing 16 August 2021.

The Bonds are expected to be quoted on the NZX Debt Market.

Full details of the Bond offer are contained in the Series Notice attached. The offer will be made as an offer of debt securities of the same class as existing quoted debt securities pursuant to the Financial Markets Conduct Act 2013. The notice required by the Financial Markets Conduct Regulations 2014 has been provided to NZX.

There is no public pool for the Bonds, which will be reserved for the Joint Lead Managers, institutional investors and other primary market participants invited to participate in the bookbuild.

LGFA has decided to cancel the tender that was scheduled to occur on 12 May 2021.

Arranger and Joint Lead Manager

Phone: 0800 284 017

Joint Lead Managers

Phone: 0800 269 476

Phone: 0800 272 266

Westpac Banking Corporation
Phone: 0800 772 142


For all investor relations and media queries, please contact:

Mark Butcher, Chief Executive / 04 974 6744