The biggest issue in the New Zealand debt market has historically been shortage of domestic supply relative to a demand pool that has grown significantly in the KiwiSaver era. In September, BNZ and KangaNews convened their annual New Zealand roundtable with a specific goal in mind: to discuss whether the national infrastructure need, the emergence of bank securitisation and other factors can radically change the supply landscape.
The Reserve Bank of New Zealand (RBNZ) will begin purchasing New Zealand Local Government Funding Agency (LGFA) bonds. In a 6 April announcement, the RBNZ says the purchases “will be in small scale for liquidity management purposes and to support market functioning”.
On 6 April, New Zealand Debt Management (NZDM) (AA+/Aaa/AA+) launched a minimum NZ$2 billion (US$1.2 billion) syndicated increase to its May 2031 line. Indicative price guidance for the forthcoming transaction, which is expected to price on the day after launch, is 32-37 basis points area over the April 2029 New Zealand government bond. ANZ, BNZ, Commonwealth Bank of Australia and UBS are joint lead managers.
On 3 April, New Zealand Debt Management (NZDM) (AA+/Aaa/AA+) mandated ANZ, BNZ, Commonwealth Bank and UBS for a syndicated tap of its May 2031 bond. The deal is expected to launch in the week beginning 6 April.
On 1 April, New Zealand Local Government Funding Agency (LGFA) (AA+/AA+) revealed it is considering a syndicated bond deal maturing in April 2026. An investor conference call will be held on 2 April. BNZ is arranger for the transaction and joint lead manager alongside ANZ, Commonwealth Bank and Westpac Banking Corporation New Zealand Branch.
The Reserve Bank of New Zealand added its voice to the global chorus of central banks implementing unconventional monetary policy measures with the launch of a large-scale asset purchase programme on 23 March. This is designed to reverse tighter funding conditions from the COVID-19 crisis.