Shareholders Approve Change to LGFA Foundation Policy Covenant

NZX Announcement
30 June 2020

SHAREHOLDERS APPROVE CHANGE TO LGFA FOUNDATION POLICY COVENANT

The shareholders of the New Zealand Local Government Funding Agency Limited (LGFA) have today approved at a Special General Meeting, the changes to the foundation policy financial covenant set out in its foundation policies.

As advised to the NZX on 4 May 2020 the LGFA board proposed to amend the net debt / total revenue covenant that applies to local authority borrowers with a long-term credit rating of 'A' equivalent or higher. Any changes to the foundation policies require approval by LGFA shareholders.

Local authority borrowers with a long-term credit rating of 'A' equivalent or higher are now required to maintain their net debt / total revenue ratio
• for the financial year ending 30 June 2020 no more than 250%;
• for the financial years ending 30 June 2021 and 2022 no more than 300%; and
• for each of the next four years financial years, a decrease of 5% until a limit of 280% will apply for and from the financial year ending 30 June 2026.


ENDS
Released on behalf of New Zealand Local Government Funding Agency Limited by Mark Butcher, Chief Executive.
Telephone +64 4 974 6744
Email mark.butcher@lgfa.co.nz
Website lgfa.co.nz

30 Jun 2020