Launch of 20 September 2035 Inflation-Indexed Bond Tap, and Concurrent Repurchase of 20 September 2025 Inflation-Indexed Bond, Announced
The Treasury announces the syndicated tap of the 2.50% coupon 20 September 2035 inflation-indexed bond, and concurrent repurchase of the 2.00% coupon 20 September 2025 inflation-indexed bond. Given the timing of the launch, the Treasury also announces the cancellation of the tender scheduled for 25 August 2022.
As previously announced, the Treasury expects to issue between NZ$1.5 billion and NZ$2.5 billion of the 20 September 2035 inflation-indexed bond in the syndicated tap. Initial price guidance is 57 to 63 basis points over the 20 September 2030 inflation-indexed bond.
As previously announced, concurrent to the tap, the Treasury is open to repurchasing up to NZ$1.5 billion of the 20 September 2025 inflation-indexed bond at a yield of 126 basis points under the 20 September 2030 inflation-indexed bond.
The transaction will be priced on 24 August 2022. Further issuance of the 20 September 2035 inflation-indexed bond will not occur prior to November 2022.
ANZ Bank New Zealand Limited; Bank of New Zealand; UBS AG, Australia Branch; and Westpac Banking Corporation, New Zealand Branch are Joint-Lead Managers for the issue.