NZX
16/11/2015 09:24
GENERAL
NOT PRICE SENSITIVE
REL: 0924 HRS NZX Limited
GENERAL: NZX: Listing of $5.5b LGFA bonds increases NZDX size by 41%
NZX is pleased to welcome the New Zealand Local Government Funding Agency
(LGFA) to the NZX Debt Market today. LGFA has listed all six existing series
of its bonds on NZX's Debt Market, representing a total principal amount of
$5.56 billion.
The listings increase the capitalisation of NZX's Debt Market to
approximately $19.09 billion or 7.9% of Gross Domestic Product (GDP), an
increase of 41%. This is in addition to the $1.99 billion of other new debt
that has already been listed this year on the NZX Debt Market.
The LGFA debt listing is another key milestone in the development of New
Zealand's capital markets. The 2009 Capital Market Development Taskforce
report 'Capital Markets Matter' set out a series of recommendations to
overhaul New Zealand's capital markets, including broadening the range of
quality debt offerings on the market by increasing the availability of retail
debt offerings from government, local authorities and government-owned
businesses - including long-dated debt.
NZX CEO Tim Bennett commented: "New Zealand needs deep, liquid capital
markets to fund business growth and drive economic development. Today's LGFA
debt listing demonstrates the progress we are making in our capital markets
and our commitment to getting more 'products on the shelves' for investors."
LGFA CEO Mark Butcher commented: "Listing on the NZX Debt Market will further
extend our retail investor base, provide greater price transparency to all
investors and achieve best practice from a governance perspective. Listing
should also help increase secondary market liquidity in LGFA Bonds and assist
retail investors with greater access to a highly rated and liquid fixed
income investment."
For further information please contact:
Kate McLaughlin
Corporate Communications
T: 09 309 3654
M: 027 533 4529
E: [email protected]
About NZX Limited
NZX builds and operates capital, risk and commodity markets and the
infrastructure required to support them. We provide high quality information,
data and tools to support business decision making. We aim to make a
meaningful difference to wealth creation for our shareholders and the
individuals, businesses and economies in which we operate. To learn more
about NZX, please visit: www.nzxgroup.com
End CA:00273470 For:NZX Type:GENERAL Time:2015-11-16 09:24:58
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