The Treasury announces the launch of a new 1.50% coupon 15 May 2031 nominal bond by way of syndication. Given the timing of the launch, the Treasury also announces the cancellation of the 15 April 2037 nominal bond tender scheduled for 19 September 2019.
The Treasury expects to issue between $1.0 billion and $2.0 billion of the 15 May 2031 nominal bond, with the transaction capped at $2.0 billion. Initial price guidance is 13 to 17 basis points over the 20 April 2029 nominal bond.
The issue is expected to be priced on Wednesday 18 September 2019, and further issuance of the new bond will not occur prior to January 2020.
Bank of New Zealand; Commonwealth Bank of Australia; UBS AG, Australia Branch; and Westpac Banking Corporation (acting through its New Zealand branch) are Joint-Lead Managers for the issue.
In conjunction with the above 15 May 2031 nominal bond syndication the Issuer considers the activity of facilitating swap hedges and switches as a part of the Joint Lead Manager activities. The lines to be considered for switch are the nominal New Zealand Government bonds out to 15 April 2037. For the avoidance of doubt the Issuer will not be undertaking any buyback of the aforementioned lines. The Joint Lead Manager syndicate price is not the only available price and investors may seek pricing from any market participant.
As this transaction is capped at $2.0 billion, the book may close at short notice.
Andrew Hagan | Director, Capital Markets
Tel: +64 4 917 6937
Matthew Collin | Head of Portfolio Management
Tel: +64 4 917 6015