NZX Announcement

LGFA releases the 2023-26 Statement of Intent, announces bond issuance programme for 2023-24 and increase in individual bond maturity cap.

Statement of Intent

The New Zealand Local Government Funding Agency (LGFA) has released its Statement of Intent (“SOI”) to shareholders that covers the three-year period from 1 July 2023 to 30 June 2026.

The SOI is attached here

Bond Issuance Programme

The SOI includes the strategic priorities, objectives, performance targets and financial forecasts for the organisation. As part of the financial forecasts, it is assumed the projected gross bond issuance (excluding treasury stock) for the next three years will be:

FY24 NZ$4.20 billion
FY25 NZ$4.15 billion
FY26 NZ$4.24 billion

Given the increased projected borrowing requirement, LGFA will consider issuing foreign currency denominated debt in the coming financial year.

Increase in Individual Bond Maturity Cap

LGFA has also decided to increase the cap on its individual bond maturities (excluding Treasury Stock) from $2.5 billion to $3.0 billion. The decision reflects the breadth and depth of the current LGFA investor base and current market conditions. It also provides issuance flexibility to LGFA given the uncertainty regarding the impact of the Affordable Waters Reform Programme on local government sector borrowing over the next two years.

Released on behalf of NZ Local Government Funding Agency Limited by Mark Butcher, Chief Executive.
Telephone +64 4 974 6744