LGFA confirms Issue Price, Interest Rate and Issuance Yield

NZX Announcement
30 July 2020

LGFA confirms Issue Price, Interest Rate and Issuance Yield

New Zealand Local Government Funding Agency Limited announced today that it will issue:

a) NZ$600 million of unsecured, unsubordinated, fixed rate bonds maturing 15 April 2037 (2037 Bonds); and

b) NZ$400 million of an existing series of unsecured, unsubordinated, fixed rate bonds maturing 14 April 2022 (2022 Bonds, together with the 2037 Bonds, the Bonds).

2037 Bonds

The Coupon/Interest Rate for the 2037 Bonds has been set at 2.00% per annum.

The Issuance Yield for the 2037 Bonds has been set at 1.937% per annum, based on a Margin of 0.97% per annum as previously announced.

The Issue/Settlement Price for the 2037 Bonds has been determined (using the formula in the Series Notice) as $1.01500481 per bond.

All of the 2037 Bonds have been allocated to participants (or their clients) in the bookbuild process and there is no public pool.

The 2037 Bonds are expected to be issued on 4 August 2020. The 2037 Bonds are expected to be quoted on the NZX Debt Market on 5 August 2020 under the ticker code LGF130.

2022 Bonds

The Coupon/Interest Rate for the 2022 Bonds is 2.75% per annum.

The Issuance Yield for the 2022 Bonds has been set at 0.412% per annum, based on a Margin of 0.21% per annum as previously announced.

The Issue/Settlement Price for the 2022 Bonds has been determined (using the formula in the Series Notice) as $1.04783906 per bond.

All of the 2022 Bonds have been allocated to participants (or their clients) in the bookbuild process and there is no public pool.

The 2022 Bonds are expected to be issued on 4 August 2020. The 2022 Bonds are a further tranche of 2022 bonds that are already quoted on the NZX Debt Market under the ticker code LGF090.

Arranger and Joint Lead Manager

Bank of New Zealand
Phone: 0800 284 017

Joint Lead Managers

ANZ
Phone: 0800 269 476

CBA
Phone: 0800 272 266

Westpac Banking Corporation
Phone: 0800 942 822

For all investor relations and media queries, please contact:

Mark Butcher, Chief Executive
mark.butcher@lgfa.co.nz/04 974 6744

30 Jul 2020