Local government funder mulls April 2033 bond

Local Government NZ president Lawrence Yule

The NZ 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 on April 3 via the standard announcement of tender details made two days before 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 February. 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)


2 · Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

2 Comments & Questions

Commenter icon key: Subscriber Verified

Endless borrowing means disaster eventually

Reply
Share
  • 0
  • 0

I'm waiting to see how it ends up in America. How do you pay back trillions if you don't have it to pay back?

Reply
Share
  • 0
  • 0

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7018 0.0029 0.41%
AUD 0.9151 0.0034 0.37%
EUR 0.5960 0.0025 0.42%
GBP 0.5222 0.0019 0.37%
HKD 5.4853 0.0273 0.50%
JPY 78.8340 0.2830 0.36%

Commods

Commodity Price Change Time
Gold Index 1257.1 -3.460 2017-12-14T00:
Oil Brent 62.7 0.860 2017-12-14T00:
Oil Nymex 57.1 0.410 2017-12-14T00:
Silver Index 15.9 0.065 2017-12-14T00:

Indices

Symbol Open High Last %
NASDAQ 6887.4 6901.1 6875.8 -0.28%
DJI 24631.0 24672.5 24585.4 -0.31%