A strong response from overseas investors helped new zealand comfortably hit size and price targets for a NZ$2bn (US$1.75bn) 13-year benchmark last Wednesday, its second syndicated offering outside the inflation-linked market. The New Zealand Debt Management Office priced the 4.5% April 15 2027 nominal bond to yield 4.68%, at the tight end of an indicated spread of 21bp-25bp over the government's April 2023s. The offering was also near the top of its NZ$lbn-NZ$2bn target size. The NZDMO typically tenders bonds in smaller regular offerings, so it takes time before newly introduced bonds reach the benchmark size demanded by many investors. Syndicated bonds, on the other hand, achieve benchmark and liquidity requirements immediately, so they attract a broader initial range of investors.
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