LGFA launches sustainable financing bond offer

NZX Announcement 11 April 2023 LGFA launches sustainable financing bond offer New Zealand Local Government Funding Agency Limited (LGFA) announced today that it is offering NZ$300 million unsecured, unsubordinated fixed rate sustainable financing bonds maturing on 15 May 2030 (Sustainable Financing Bonds) to institutional and New Zealand retail investors, with the ability to accept unlimited oversubscriptions at LGFA's discretion. The Coupon/Interest Rate for the Sustainable Financing Bonds will be set by LGFA, taking into account the Issuance Yield, on the Rate Set Date (12 April 2023). LGFA expects the Coupon/Interest Rate to be 4.50% per annum. The Issuance Yield will be the sum of the Margin and the Base Rate on the Rate Set Date. The Margin will be set following a bookbuild on the Rate Set Date. The Coupon/Interest Rate, Issuance Yield, Margin and Issue/Settlement Price for the Sustainable Financing Bonds will be announced by LGFA via NZX shortly thereafter. The indicative Margin range for the Sustainable Financing Bonds is 0.61% to 0.65% per annum. Other information The offer will close on 12 April 2023 following the bookbuild, with the Sustainable Financing Bonds expected to be issued on 17 April 2023. LGFA does not intend to offer any additional tranches of the Sustainable Financing Bonds until its July 2023 tender, currently scheduled for the week commencing 3 July 2023. The Sustainable Financing Bonds are expected to be quoted on the NZX Debt Market. Full details of the Sustainable Financing Bond offer is contained in the Series Notice attached. The offer will be made in reliance upon the Financial Markets Conduct (New Zealand Local Government Funding Agency Limited Sustainable Financing Bond Offer) Exemption Notice 2023 (Exemption Notice). The notice required by the Exemption Notice and the Series Notice has been provided to NZX. A copy of LGFA's Sustainable Financing Bond Framework is also attached. There is no public pool for the Sustainable Financing Bonds, which will be reserved for the Joint Lead Managers, institutional investors and other primary market participants invited to participate in the bookbuild. LGFA has decided to cancel the tender that was scheduled to occur on 12 April 2023. Arranger, Sustainability Coordinator and Joint Lead Manager Westpac Banking Corporation Phone: 0800 772 142 Joint Lead Managers ANZ Phone: 0800 269 476 BNZ Phone: 0800 275 269 CBA Phone: 0800 272 266 ENDS For all investor relations and media queries, please contact: Mark Butcher, Chief Executive mark.butcher@lgfa.co.nz / 04 974 6744 End CA:00409659 For:LGF Type:OFFER Time:2023-04-11 08:31:27