NZX Announcement
20 August 2019
LGFA launches fixed rate bond offer and cancels 21 August 2019 tender
New Zealand Local Government Funding Agency Limited (LGFA) announced today that it is offering up to NZ$350,000,000 unsecured, unsubordinated, fixed rate bonds with a maturity date of 20 April 2029 (Bonds) to institutional and New Zealand retail investors, with the ability to accept up to $200,000,000 of 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 (21 August 2019). 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 21 August 2019. 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 0.48% to 0.52% per annum.
The offer will close on 21 August 2019 following the bookbuild, with the Bonds expected to be issued on 26 August 2019.
LGFA does not intend to offer any additional tranches of the Bonds until its November 2019 tender, currently scheduled for the week commencing 4 November 2019.
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.
LGFA will hold a global investor conference call at 2.00pm NZT on 20 August 2019. A copy of the investor presentation in relation to the Bond offer is attached and details of the conference call are outlined below.
LGFA has canceled the proposed tender that was scheduled to occur on 21 August 2019.
LGFA Investor Conference Call
Tuesday 20 August 2019
New Zealand 0800 452 257 2.00pm
Australia 1800 093 431 12.00pm (AEST)
Singapore 800 120 6856 10.00am
Hong Kong +852 3005 2399 10.00am
Japan 0120 200 683 11.00am
International +61 2 8047 9393
Pin Code 82202467#
Joint Lead Managers
ANZ
Phone: 0800 269 476
Bank of New Zealand
Phone: 0800 284 017
Westpac Banking Corporation
Phone: 0800 942 822
ENDS
For all investor relations and media queries, please contact:
Mark Butcher, Chief Executive
mark.butcher@lgfa.co.nz / 04 974 6744