LGFA fixed rate bond offers: Bookbuild update 2

NZX Announcement
30 July 2020

LGFA fixed rate bond offers: Bookbuild update 2

On 29 July 2020, New Zealand Local Government Funding Agency Limited (LGFA) announced that it is offering:

a) NZ$300 million unsecured, unsubordinated, fixed rate bonds with a maturity date of 15 April 2037 (2037 Bonds) to institutional and New Zealand retail investors, with the ability to accept unlimited oversubscriptions at LGFA's discretion; and

b) NZ$200 million of an existing series of unsecured, unsubordinated, fixed rate bonds with a maturity date of 14 April 2022 (2022 Bonds) to institutional and New Zealand retail investors, with the ability to accept unlimited oversubscriptions at LGFA's discretion,

together, the Bonds.

Full details of the Bond offers are contained in the Series Notices for the 2037 Bonds and 2022 Bonds which were attached to the launch announcement on 29 July 2020.

The bookbuild process is underway. An update is set out below.

2037 Bonds

Bookbuild orders

As at 8.40am NZT in excess of NZ$675 million with the revised indicative Margin below (including NZ$100,000,000 of 2037 Bonds reserved for subscription by LGFA and interest from the Joint Lead Managers).

LGFA has determined to cap the issue size at NZ$600 million (including NZ$100 million reserved for subscription by LGFA).

Indicative Margin

The indicative Margin range set out in the Series Notice was 0.97 – 1.04 per cent per annum. The indicative Margin has now been revised to 0.97 per cent per annum.

Indicative Issuance Yield

Based on the revised indicative Margin, 1.971 per cent per annum.

Closing Date

Bids due by 2pm NZT, 30 July 2020.

ISIN

NZLGFDT016C5


2022 Bonds

Bookbuild orders

As at 8.40am NZT in excess of NZ$400 million with the revised indicative Margin below (including interest from the Joint Lead Managers).

LGFA has determined to cap the issue size at NZ$445 million.

Indicative Margin

The indicative Margin range set out in the Series Notice was 0.20 – 0.23 per cent per annum. As announced on 29 July 2020, based on investor interest, the indicative Margin range was revised to 0.20 – 0.21 per cent per annum.

The indicative Margin has now been revised to 0.21 per cent per annum.

Indicative Issuance Yield

Based on the revised indicative Margin, 0.414 per cent per annum.

Closing Date

Bids due by 2pm NZT, 30 July 2020.

ISIN

NZLGFDT010C8


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