LGFA is pleased to announce a number of recent achievements that provide a strong platform for continued growth in 2013.
Firstly, and most importantly, we are delighted to welcome our 12 new shareholders who joined us on 30 November 2012. They are:
- Gisborne District Council
- Hauraki District Council
- Horowhenua District Council
- Hutt City Council
- Kapiti Coast District Council
- Manawatu District Council
- Marlborough District Council
- Palmerston North City Council
- Thames-Coromandel District Council
- Waimakariri District Council
- Wanganui District Council
- Whakatane District Council
This brings the total number of shareholders in LGFA to 31, comprising 30 participating councils and the New Zealand Government.
It is also pleasing to note that eight of these new shareholders borrowed from us at our final bond tender for the year held on 12 December.
That tender increased LGFA’s bond outstandings to over $1.5 billion. This represents a bond programme in our first year that is well in excess of the $1 billion we initially expected.
We have consistently achieved substantial reductions in our margins over New Zealand Government Bonds (NZGBs). In particular, the margin above NZGBs on our benchmark December 2017 bond has fallen from 113 basis points to just 66 basis points over the course of the year.
The nine successful bond tenders we have held during 2012 have provided reduced funding costs to councils and attractive returns for investors.
We are delighted that our success has been recognised by KangaNews, Australasia’s leading one-stop information source on fixed income markets. In the KangaNews Awards 2012, LGFA won New Zealand Domestic Issuer of the Year.
Fitch Ratings has also recognised our strong credit fundamentals by affirming LGFA’s local currency rating at AA+ and foreign currency rating at AA, both with stable outlooks.
Phil Combes, Chief Executive
T 04 462 6849