New Zealand Local Government Funding Agency
New Zealand’s government-sector issuers experienced market upheaval as severe as their neighbours in Australia during the height of the COVID-19 crisis in March and April. Intervention from the Reserve Bank of New Zealand (RBNZ) and an enviable pace of economic reopening have improved the outlook, but issuers at a KangaNews-Westpac roundtable in June say plenty of challenges remain to be faced.
At the start of June, KangaNews and Westpac brought together New Zealand’s biggest government-sector issuers in Wellington to discuss the path of their market from the depths of the crisis back to functionality, the new challenges of 2021 and the outlook for a raft of factors – including sustainable-finance evolution, inflation-linked issuance and the long-dated market.
New Zealand Local Government Funding Agency (LGFA)’s new 10-year deal shows signs of a longer-duration bank balance-sheet bid in the local market, a development the issuer says is encouraging for other borrowers seeking longer-tenor debt.
On 11 May, New Zealand Local Government Funding Agency (LGFA) (AAA/AA+) launched an indicative NZ$300 million (US$217.9 million) syndicated 10-year bond transaction. The forthcoming deal is being marketed at 35-38 basis points over mid swap, with pricing expected on the day after launch. BNZ is arranger for the deal and joint lead manager alongside ANZ, Commonwealth Bank and Westpac Banking Corporation New Zealand Branch.
On 5 May, New Zealand Local Government Funding Agency (LGFA) (AAA/AA+) revealed plans for a new domestic 10-year transaction, offered to institutional and New Zealand retail investors. Global investor calls will be held on 6 May, with the deal expected to launch in the week beginning 10 May.
HIGH-GRADE ISSUERS YEARBOOK 2021
The ultimate guide to Australian and New Zealand government-sector borrowers.