The New Zealand Debt Management Office (NZDMO) says it has issued NZ$2 billion worth of seven-year bonds with a 3% coupon.
The NZDMO, a unit of Treasury that manages the Government's debt, says the bonds, which mature on April 15, 2020, were issued at a yield to maturity of 3.15%. The bonds were issued via a syndicate of banks.
"Total book size, within the initial syndication pricing range, was in excess of NZ$2.8 billion," the NZDMO said.
The deal's due to settle next Monday, April 15. The 3% annual interest will be paid semi-annually in arrears. Here's the term sheet.
It's one of the NZDMO's biggest single deals, but smaller than last October's NZ$2.5 billion issue of inflation indexed bonds.
"No 15 April 2020 bonds will be offered in tenders prior to 30 May 2013. NZDMO will continue to assess demand for bond maturities ahead of each tender as well as taking into account its own portfolio requirements. Further announcements relating to the Government’s domestic bond programme will be made in conjunction with the Budget to be released on 16 May 2013," the NZDMO said.
The joint lead managers of the syndicate are ANZ Bank New Zealand, Bank of New Zealand, Deutsche Bank AG (New Zealand Branch), and Westpac Banking Corporation (acting through its New Zealand Branch).
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