A run of supply in March reveals a robust demand picture for rated and unrated corporate credits in New Zealand’s retail bond market – despite the rise of appealing issuance options elsewhere. The market has remained consistent through various stages of the rates cycle and users say there is little reason to anticipate a change.

New Zealand’s capital market faced several headwinds in 2023 but managed to navigate a course to issuance consistent with recent years. A late year regulatory update could suggest smoother sailing ahead for at least one key sector, though deal flow from 2023 provides few hints at a radical change in supply or demand patterns.

Meridian Energy’s retail green bond priced the day before the Silicon Valley Bank crisis hit newsstands. Market participants say the deal’s result provides further proof of the strength of New Zealand’s retail corporate bond market. Global primary markets have been all but shut since the shock, but Kiwi Property Group proceeded with its launch on 14 March, suggesting the New Zealand retail market is pushing ahead.