This marks New Zealand Local Government Funding Agency Limited's first international venture
A&O Shearman has helped the New Zealand Local Government Funding Agency Limited (LGFA) to set up a US$10BN Euro Medium Term Note Programme.
The programme includes three multi-currency issuances. The agency issued a seven-year CHF220m fixed rate bond, a three-year US$500m fixed rate bond and a five-year €500m fixed rate bond under the programme over three weeks and within two months of the programme’s establishment.
“These landmark deals mark a significant milestone in LGFA’s journey towards diversifying its funding sources. For the first time, they have ventured into international markets, surpassing their previous fundraising activities in Australia and New Zealand”, A&O Shearman lead partner Minesh Patel said. “By issuing listed bonds in various currencies, they have demonstrated their newfound ability to access a deep pool of offshore institutional investors which will provide a strong platform for any future trades”.
Patel explained that the market was witnessing “a growing willingness among international debt investors to engage and provide funding to New Zealand issuers”.
Patel, who is based in Sydney, was supported by senior associate Yin Lim, lawyer Melanie Campisi and graduate lawyer Clementine Rose. Singapore partner Aloysius Tan took the lead on the aspects of the deal involving the listing of the programme and the bonds on the Singapore Exchange Securities Trading Limited. Tan was supported by associates Celine Sim and Nick Yap.
The LGFA focuses on financing the local government sector in New Zealand. Its main objective is to offer more efficient financing costs and diversified funding sources to New Zealand local authorities and council-controlled organizations.
