New Zealand Debt Management
The New Zealand government-sector bond market is well placed going into 2018, issuers tell KangaNews. A positive economic story and projected lower issuance from the sovereign should support a solid supply-demand dynamic – though issuers say they continue to work hard at investor engagement at home and abroad.
On 16 September, New Zealand Debt Management (NZDM) (AA+/Aaa/AA+) decreased its New Zealand government bond (NZGB) programme for the 2020/21 financial year to NZ$50 billion (US$33.5 billion) from the NZ$60 billion announced at the Budget Economic and Fiscal Update 2020 in May.
New Zealand market participants gathered virtually on 20 August for the ANZ-KangaNews New Zealand Capital Markets Forum (NZCMF). New Zealand’s economy, politics and COVID-19 response are setting the market’s parameters, and discussion focused on managing through and beyond the current rocky patch.
On 24 August, New Zealand Debt Management (NZDM) (AA+/Aaa/AA+) launched a NZ$2-4 billion (US$1.3-2.6 billion) syndicated tap of its April 2027 line. The forthcoming deal is being marketed at 18-22 basis points area over the April 2025 nominal bond. Pricing is expected on the day after launch, according to lead managers ANZ, BNZ, Commonwealth Bank and UBS.
On 19 August, New Zealand Debt Management (NZDM) (AA+/Aaa/AA+) announced ANZ, BNZ, Commonwealth Bank and UBS as lead managers for a syndicated tap of its April 2027 nominal bond. The deal is expected to launch in the week beginning 24 August.
HIGH-GRADE ISSUERS YEARBOOK 2020
The ultimate guide to Australian and New Zealand government-sector borrowers.