Government debt manager New Zealand Debt Management (NZDM) will issue a $3 billion, 30-year bond after receiving more than $12 billion worth of investor interest.
The bond, which will be the Government's longest-term debt on issue, will pay a yield to maturity of 2.8575%.
"The Treasury has today announced that NZ$3.0 billion of the nominal 15 May 2051 New Zealand Government Bond has been issued via [bank] syndication," NZDM, a unit of Treasury, says.
"The bonds, which carry a coupon of 2.75%, were issued at a spread of 25 basis points over the 15 May 2041 nominal bond, at a yield to maturity of 2.8575%. Total book size, at final price guidance, exceeded NZ$12 billion."
Settlement of the 30-year bond will occur on September 24 with no further issuance before December.
NZDM had said previously the Government would borrow at least $2 billion through the 30-year bond issue, and up to $3 billion.