Housing New Zealand
New Zealand’s semi-government market received a significant boost in the May 2018 budget when the government mandated a further uplift to Housing New Zealand (Housing NZ)’s home-building programme. The agency’s Auckland-based chief executive, Andrew McKenzie, and Wellington-based treasurer, Sam Direen, share insights into the financing mandate, funding strategy and commitment to the New Zealand bond market.
The KangaNews New Zealand Debt Capital Markets Summit 2018, held in Auckland on 8 August, attracted the largest delegate representation ever for an event that has run annually since 2013. Discussion captured all the talking points in the New Zealand capital market including macroeconomics, the business environment and trade updates, as well as spotlights on infrastructure, technology, bank securitisation and investing with impact.
Housing New Zealand (Housing NZ) returned to the New Zealand debt capital market for the first time since 1999 with a NZ$500 million (US$351.2 million) dual-tranche transaction on 1 June. Deal sources suggest the addition of another high-grade issuer in the New Zealand dollar market is a boon for market development, particularly due to the nature of the institution and its intent to be a repeat issuer.
Housing New Zealand (Housing NZ) (AA+) launched a domestic transaction on 31 May, seeking a minimum of NZ$100 million (US$69.9 million) in each of five- and seven-year tranches with maximum aggregate volume of NZ$500 million. ANZ and Westpac New Zealand are leading the deal, which is being marketed at 32-38 basis points over mid-swap for the five-year notes and 48-55 basis points over mid-swap for the seven-year notes. Pricing is expected by 1 June.
Housing New Zealand (Housing NZ) plans to issue around NZ$1 billion (US$688.1 million) by the middle of 2019 as the public-housing agency significantly ramps up its new building and renovation – and thus funding – activities. The issuer talks to KangaNews about its issuance strategy and the unique nature of its credit.