NZX Announcement
11 October 2022
New Zealand Local Government Funding Agency Limited (LGFA) announced today that it is offering to institutional and New Zealand retail investors the following existing series of unsecured, unsubordinated, fixed rate bonds with the maturity dates and NZX ticker codes listed below (together, the 'Bonds'). Each series of Bonds is already quoted on the NZX Debt Market and will be offered in the amount indicated below.
2025 Bonds
Maturity Date: 15 April 2025
NZX ticker code: LGF070
Coupon/Interest rate: 2.75%
Amount offered: NZ$150 million, with the ability to accept unlimited oversubscriptions at LGFA's discretion
Indicative Margin Range: 0.27% to 0.30% per annum
2029 Bonds
Maturity Date: 20 April 2029
NZX ticker code: LGF110
Coupon/Interest rate: 1.50%
Amount offered: NZ$150 million, with the ability to accept unlimited oversubscriptions at LGFA's discretion
Indicative Margin Range: 0.53% to 0.56% per annum
For each series of Bonds, the Issuance Yield will be the sum of the Margin and the Base Rate. The Margin for each series of Bonds will be set following a bookbuild on the Rate Set Date, being 12 October 2022. The Issuance Yield, Margin and Issue/Settlement Price for each series of Bonds will be announced by LGFA via NZX shortly thereafter.
Other information
The offers will close at 2:00 pm on 12 October 2022 following the bookbuilds, with the Bonds expected to be issued on 17 October 2022.
LGFA does not intend to offer any additional tranches of the Bonds until its February 2023 tender, currently scheduled for the week commencing 30 January 2023.
Full details of the Bond offers are contained in the Series Notices attached. The offers will each 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 notices required by the Financial Markets Conduct Regulations 2014 have been provided to NZX.
![[Final Version] Series Notice (2025 Bond) - LGFA October 2022 Bond Syndication v.1.pdf](/sites/default/files/styles/sector_md/public/2022-10/%5BFinal%20Version%5D%20Series%20Notice%20%282025%20Bond%29%20-%20LGFA%20October%202022%20Bond%20Syndication%20v.1.pdf-p1.png?itok=h0DdmPbo)
![[Final Version] Series Notice (2029 Bond) - LGFA October 2022 Bond Syndication v.1.pdf](/sites/default/files/styles/sector_md/public/2022-10/%5BFinal%20Version%5D%20Series%20Notice%20%282029%20Bond%29%20-%20LGFA%20October%202022%20Bond%20Syndication%20v.1.pdf-p1.png?itok=4eMoSBJc)
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 bookbuilds.
LGFA has decided to cancel the tender that was scheduled to occur on 12 October 2022.
Arranger and Joint Lead Manager
BNZ
Phone: 0800 284 017
Joint Lead Managers
ANZ
Phone: 0800 269 476
CBA
Phone: 0800 272 266
Westpac Banking Corporation
Phone: 0800 772 142
ENDS
For all investor relations and media queries, please contact:
Mark Butcher, Chief Executive
mark.butcher@lgfa.co.nz / 04 974 6744