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.
Read our Sustainability Financing Framework.
Medium-term notes on issue as at 5 November 2019
|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.
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.
As at 30 September 2019, there was $525 million on issue. Regular tenders of $25 million occur on a fortnightly basis and private placements as required.
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: 8 November 2019