LGFA launches fixed rate sustainable financing bond offer

NZX Announcement 01 October 2024 LGFA launches fixed rate sustainable financing bond offer 1 October 2024 New Zealand Local Government Funding Agency Limited (LGFA) announced today that it is offering NZ$400 million unsecured, unsubordinated, fixed rate sustainable financing bonds maturing on 14 May 2032 (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 (2 October 2024). 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 0.88 % to 0.92 % per annum. Other information The offer will close at 11:00 am on 2 October 2024, with the Sustainable Financing Bonds expected to be issued on 7 October 2024. LGFA does not intend to offer any additional tranches of the Sustainable Financing Bonds until its January 2025 tender, currently scheduled for the week commencing 20 January 2025. 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 as an offer of debt securities of the same class as existing quoted debt securities pursuant to the Financial Markets Conduct Act 2013. The notice required by the Financial Markets Conduct Regulations 2014 has been provided to NZX. 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. Joint Lead Managers ANZ Phone: 0800 269 476 BNZ Phone: 09 375 1391 CBA Phone: 0800 272 266 Westpac Banking Corporation Phone: 0800 772 142 ENDS For all investor relations and media queries, please contact: Mark Butcher, Chief Executive mark.butcher@lgfa.co.nz / 04 974 6744