Kāinga Ora - Homes and Communities
About Kāinga Ora
Kāinga Ora – Homes and Communities was established on 1 October 2019 to combine the KiwiBuild Unit with Housing New Zealand Limited (HNZL) and its development subsidiary, HLC 2017 Limited. This has enabled a more cohesive approach to delivering the government’s housing priorities.
Kāinga Ora has two key roles: being a world-class public-housing landlord and partnering with the development community, Maori, local and central governments, and others to design and develop urban communities of different sizes. Kāinga Ora provides tenancy services as well as maintaining and developing around 68,200 units of public housing stock, and providing home-ownership products and other housing-related services.
Under the Kāinga Ora Homes and Communities Act 2019, Housing New Zealand Corporation was disestablished and its functions and assets vested in a new Crown agent called Kāinga Ora – Homes and Communities, which is 100% Crown-owned.
HNZL and Housing New Zealand Build Limited continue to operate as wholly owned subsidiaries of Kāinga Ora. HLC 2017 Limited has been disestablished.
The New Zealand government does not explicitly guarantee Kāinga Ora debt. Even so, Kāinga Ora enjoys credit ratings equal with the New Zealand sovereign.
Kāinga Ora had NZ$8 billion of debt outstanding as at 31 December 2021, comprising NZ$2 billion in Crown loans and NZ$6 billion in market debt. The latter includes NZ$5.9 billion of domestic bonds and NZ$125 million of bills. The agency’s borrowing protocol now allows for up to NZ$8.3 billion of debt to be sourced from capital markets.
|CREDIT RATINGS (S&P/M)
|CREDIT RATINGS (S&P/M)
LONG-TERM FOREIGN CURRENCY
SINCE JAN 2020
|TERM FUNDING REQUIREMENT
| FY22 FY21 FY20
~2.3 1.7 2.3
|RBA REPO ELIGIBLE||NO|
|RBNZ REPO ELIGIBLE||YES|
By 30 June 2022, Kāinga Ora expects to have around NZ$7.5 billion of domestic bonds on issue, although this will depend on required financing and market conditions.
The Kāinga Ora bond tender programme will generally account for around half the annual borrowing requirement. Tenders tap existing nominal lines, providing greater liquidity and access to new investors.
Kāinga Ora remains focused on building a New Zealand dollar bond curve, having established 15-year nominal tenor in FY2021. Separately, Kāinga Ora has also issued a 20-year inflation-indexed bond.
Kāinga Ora issues all bonds as “wellbeing bonds” under its sustainability financing framework. Proceeds from the Kāinga Ora wellbeing bond programme are allocated to a portfolio delivering housing and urban development projects eligible under the framework. Eligible projects are financed in whole or in part by Kāinga Ora.
Kāinga Ora is an active bills issuer, including regular fortnightly tenders of a minimum of NZ$25 million and private placements as required.
FOR FURTHER INFORMATION PLEASE CONTACT:
Liquidity and Investor Relations Manager
+64 21 351 139
+64 21 386 863
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