Debt and ratings
Kāinga Ora’s main subsidiary, Housing New Zealand Limited (HNZL), issues regularly from its NZD medium-term note and commercial paper programmes.
Medium term notes
All medium-term notes on issue, and expected future issuance, are classified as Wellbeing Bonds under Kāinga Ora’s Sustainability Financing Framework. All issuance to date has been via syndication.
Medium-term notes on issue as at 31 January 2020
|Maturity||Coupon||Amount on issue||Issue date of first tranche|
|12 June 2023||2.97%||$300 million||12 June 2018|
|12 June 2025||3.36%||$675 million||12 June 2018|
|5 October 2026||2.247%||$900 million||5 April 2019|
|18 October 2028||3.42%||$425 million||18 October 2018|
|Total on issue||$2,300 million|
Notes offered to investors are unsecured and unsubordinated, subject to negative pledge provisions, expected to be repo-eligible with RBNZ and offered to domestic and offshore (in certain jurisdictions) institutional investors. In addition, the Approved Issuer Levy is paid by HNZL.
All Notes have a wholesale listing on the NZX Debt Market(external link).
Detailed information on these programmes is available in the Information Memorandum and Note Deed Poll , as well as terms sheets related to all issuance.
HNZL’s NZD commercial paper programme has a $1,000 million limit. Detailed information on this programme is available in the Deed Poll.
Regular tenders of $25 million occur on a fortnightly basis and private placements as required.
As at 31 January 2020, there was $660 million of Commercial Paper on issue.
HNZL is 100% owned by Kāinga Ora – Homes and Communities. HNZL has credit rating assigned from both Moody's Investor Service (Moody's), and Standard and Poor's Global Ratings (S&P). Both ratings are equalised with the New Zealand Sovereign.
Moody's credit ratings for HNZL – latest update 8 November 2019
|Local currency LT||Aaa||Stable|
|Local currency ST||P-1|
|Foreign currency LT||Aaa||Stable|
|Foreign currency ST||P-1|
Moody's also assigns long-term ratings for Kāinga Ora - Homes and Communities. These local and foreign currency ratings are both Aaa.
S&P credit ratings for HNZL – latest update 1 October 2019
|Local currency LT||AA+||Positive|
|Local currency ST||A-1+|
|Foreign currency LT||AA||Positive|
|Foreign currency ST||A-1+|
Full S&P ratings report:
A credit rating is not a recommendation to buy, sell or hold any securities and may be subject to suspension, change or withdrawal at any time by the assigning rating agency.
Page updated: 21 February 2020