NZX Announcement
29 April 2025
LGFA Bond Repurchase Programme
Starting on 14 May 2025, New Zealand Local Government Funding Agency Limited (“LGFA”) intends to make offers to repurchase LGFA NZD Bonds (“Bonds”) from wholesale bond holders. Repurchases will be undertaken through repurchase tenders via Yieldbroker DEBTS under LGFA's Operating Rules and Guidelines.
As at 29 April 2025, LGFA has NZD 18.721 billion of Bonds outstanding (including NZD 1.3 billion of Bonds held as treasury stock) across ten maturities ranging from April 2026 to April 2037. The aggregate face value of Bond maturities (including treasury stock) vary between NZD740 million (April 2035s) and NZD2.855 billion (April 2026s).
Eligible Wholesale Bond Holders
Any offer to repurchase Bonds will only be made to counterparties that are registered tender counterparties under LGFA's Operating Rules and Guidelines. To participate in the repurchase offer a registered tender counterparty must be:
(a) if receiving the offer in New Zealand, a wholesale investor within the meaning of clause 3(2)(a) or (d) of Schedule 1 to the Financial Markets Conduct Act 2013; or
(b) if receiving the offer outside New Zealand, in a jurisdiction that permits LGFA to make the repurchase offer, and the registered tender counterparty to participate in the repurchase tender, without LGFA taking any action in that jurisdiction.
LGFA has not taken any action and will not take any action which would permit a repurchase offer to be made in any jurisdiction (other than New Zealand).
Repurchase Tenders
LGFA intends to conduct repurchase tenders via Yieldbroker DEBTS each Wednesday at 12.00pm (NZT). The window for submitting offers will be from 11.45am to 12.00pm (NZT).
Details of the Bond maturities LGFA is willing to repurchase will be announced 1 business day before the repurchase tender via NZX, Yieldbroker DEBTS, Bloomberg and on LGFA's website. The announcement will also include the maximum face value of Bonds for each Bond maturity LGFA is willing to repurchase and the settlement date (T +3).
Offers for sale made by registered tender counterparties in Yieldbroker DEBTS must be at the yield they are willing to sell the relevant Bond to LGFA.
LGFA is not obliged to purchase any Bonds in a repurchase tender.
Results of any repurchase tender will be announced via NZX, Yieldbroker DEBTS, Bloomberg and published on LGFA's website.
Any Bonds that are repurchased will be cancelled and will not be held as treasury stock.
LGFA will review its Bond repurchase programme every three months. LGFA reserves the right to amend or cancel the repurchase programme at any time.
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