LGFA launches fixed rate bond offer

NZX Announcement
08 April 2020

New Zealand Local Government Funding Agency Limited (LGFA) announced today that it is offering up to NZ $300 million unsecured, unsubordinated, fixed rate bonds with a maturity date of 15 April 2026 to institutional and New Zealand retail investors, with the ability to accept unlimited oversubscriptions at LGFA’s discretion.

The Coupon/Interest Rate will be set by LGFA, taking into account the Issuance Yield, on the Rate Set Date (9 April 2020). LGFA expects the Coupon/Interest Rate to be 1.50% per annum. The Issuance Yield will be the sum of the Margin and the Base Rate on the Rate Set Date. The Margin will be set following a bookbuild on 9 April 2020. The Coupon/Interest Rate, Issuance Yield, Margin and Issue/Settlement Price will be announced by LGFA via NZX shortly thereafter.

The indicative Margin range for the Bonds is 0.78% to 0.83% per annum.

The offer will close on 9 April 2020 following the bookbuild, with the Bonds expected to be issued on 15 April 2020.

LGFA does not intend to offer any additional tranches of the Bonds until its July 2020 tender, currently scheduled for the week commencing 6 July 2020.

The Bonds are expected to be quoted on the NZX Debt Market.

Full details of the Bond offer are contained in the Series Notice attached. The offer will be made as an offer of debt securities of the same class as existing quoted debt securities pursuant to the Financial Markets Conduct Act 2013. The notice required by the Financial Markets Conduct Regulations 2014 has been provided to NZX.

There is no public pool for the Bonds, which will be reserved for the Joint Lead Managers, institutional investors and other primary market participants invited to participate in the bookbuild.

Joint Lead Managers

ANZ
Phone: 0800 269 476

Bank of New Zealand
Phone: 0800 284 017

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

8 Apr 2020