Additional Issue of 20 September 2035 Inflation-Indexed Bond, and Repurchase of 20 September 2025 Inflation-Indexed Bond, Announced
The Treasury has today announced that NZ$2.5 billion of 20 September 2035 inflation-indexed New Zealand Government Bonds have been issued via syndicated tap. Concurrent to the tap, NZ$1.5 billion of 20 September 2025 inflation-indexed New Zealand Government Bonds have been repurchased.
The 2035 inflation-indexed bonds, which carry a coupon of 2.50%, was issued at a spread of 57 basis points over the 20 September 2030 inflation-indexed bond, at a yield to maturity of 2.19%. Total book size, at final price guidance, exceeded NZ$3.5 billion.
The 2025 inflation-indexed bonds, which carry a coupon of 2.00%, was repurchased at a spread of 126 basis points under the 20 September 2030 inflation-indexed bond, at a yield to maturity of 0.36%.
Settlement for both the tap, and repurchase, will occur on 31 August 2022. There will be no further issuance of the 20 September 2035 inflation-indexed bond prior to November 2022.