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LGFA contemplating new April 2033 bond
Friday 17 March 2017 09:56 AM
LGFA contemplating new April 2033 bond
By Rebecca Howard
March 17 (BusinessDesk) - The New Zealand Local Government Funding Agency, which sells bonds on behalf of local authorities, is looking at issuing a new long-dated bond in early April, it said in a statement to the stock exchange.
The LGFA is contemplating a new April 14, 2033 bond at the next tender scheduled for April 5, it said. More information will be provided April 3 via the standard announcement of tender details made two days prior to an event and if it decides to offer the 2033 bond, it will update that the following day.
A new 2033 bond will allow LGFA to provide long-dated funding to New Zealand councils to better match their assets, it said. The 2033 bond will constitute direct, unsecured debt obligations of LGFA.
As at Feb. 20, the LGFA had $7.28 billion of bonds on issue, including $300 million of Treasury stock. A 2033 bond would be the LGFA's longest dated bond.
The LGFA has a domestic currency credit rating of AA+ with Standard & Poor's, the same rating as the New Zealand government. It was established in 2011 to reduce local authority borrowing cost and began issuing bonds in 2012.
(BusinessDesk)
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