NZX Announcement
12 October 2021

New Zealand Local Government Funding Agency Limited (LGFA) announced today that it is offering:

a) NZ$300 million unsecured, unsubordinated, fixed rate bonds with a maturity date of 15 May 2028 (2028 Bonds) to institutional and New Zealand retail investors, with the ability to accept unlimited oversubscriptions at LGFA's discretion; and

b) NZ$300 million unsecured, unsubordinated, fixed rate bonds with a maturity date of 15 May 2035 (2035 Bonds) to institutional and New Zealand retail investors, with the ability to accept unlimited oversubscriptions at LGFA's discretion,

together, the 'Bonds'.

2028 Bonds

The Coupon/Interest Rate for the 2028 Bonds will be set by LGFA, taking into account the Issuance Yield, on the Rate Set Date (13 October 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 13 October 2021. The Coupon/Interest Rate, Issuance Yield, Margin and Issue/Settlement Price for the 2028 Bonds will be announced by LGFA via NZX shortly thereafter.

The indicative Margin range for the 2028 Bonds is 0.24% to 0.26% per annum.

2035 Bonds

The Coupon/Interest Rate for the 2035 Bonds will be set by LGFA, taking into account the Issuance Yield, on the Rate Set Date (13 October 2021). LGFA expects the Coupon/Interest Rate to be 3.00% 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 13 October 2021. The Coupon/Interest Rate, Issuance Yield, Margin and Issue/Settlement Price for the 2035 Bonds will be announced by LGFA via NZX shortly thereafter.

The indicative Margin range for the 2035 Bonds is 0.44% to 0.48% per annum.

Other information

The offers will close on 13 October 2021 following the bookbuilds, with the Bonds expected to be issued on 18 October 2021.

LGFA does not intend to offer any additional tranches of the Bonds until its February 2022 tender, currently scheduled for the week commencing 31 January 2022.

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

Full details of the Bond offers are contained in the Series Notices attached.

Series Notice (2028 Bond) - LGFA October 2021 Bond Syndication 12.10.21
Series Notice (2028 Bond) - LGFA October 2021 Bond Syndication
Mimetype
PDF
Filesize
1.09 MB

 

Series Notice (2035 Bond) - LGFA October 2021 Bond Syndication
Series Notice (2035 Bond) - LGFA October 2021 Bond Syndication.pdf
Mimetype
PDF
Filesize
1.09 MB

The offers will each 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 notices required by the Financial Markets Conduct Regulations 2014 have 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 bookbuilds.

LGFA has decided to cancel the tender that was scheduled to occur on 13 October 2021.

Arranger and Joint Lead Manager

BNZ
Phone: 0800 284 017

Joint Lead Managers

ANZ
Phone: 0800 269 476

CBA
Phone: 0800 272 266

Westpac Banking Corporation
Phone: 0800 772 142

ENDS
For all investor relations and media queries, please contact:

Mark Butcher, Chief Executive
mark.butcher@lgfa.co.nz / 04 974 6744