This page is intended to provide information for wholesale investors only
Housing New Zealand is the largest residential property owner in the country, owning or managing around 65,500 properties that house more than 187,000 New Zealanders.
Key to our vision of building lives and communities by housing New Zealanders is:
- ensuring our customers live well, with dignity and stability, in connected communities, and
- shaping investments in the portfolio to better meet public housing needs over the long term.
In addition to a strong focus on positive social outcomes, our recently-established Environment Strategy develops strategic responses that are tailored to address our environmental impacts and areas of influence.
Housing New Zealand’s Sustainability Financing Framework updated to explicitly recognise its contribution to wellbeing
5 September 2019
Housing New Zealand Corporation today announced it has updated its Sustainability Financing Framework (Framework) to explicitly recognise the role HNZ plays in national wellbeing and enable it to link its financing requirements accordingly.
Eligible project spend categories within the Framework have been updated to address alignment with relevant Domains and Capitals within Treasury’s Living Standards Framework(external link) (LSF).
The update is an extension of the alignment with ICMA Green Bond Principles, Social Bond Principles and the United Nations Sustainable Development Goals outlined in the original Framework.
To further highlight the focus on wellbeing, HNZ has added Wellbeing Bonds as a Sustainability Financing Transaction within the Framework. Wellbeing Bonds should be thought of as Sustainability Bonds (which align cash proceeds with both green and social expenditure) that are also aligned with the LSF, and reinforce HNZ’s focus of supporting the wellbeing of New Zealanders.
Supporting the wellbeing of New Zealanders is central to HNZ’s purpose, as it undertakes projects and expenditures that contribute to greater wellbeing outcomes for the communities it serves, including sustaining and growing intergenerational wellbeing.
The planned transition to Kāinga Ora – Homes and Communities, on 1 October 2019, further embeds this commitment. In addition, the Government is focusing on wellbeing as a principal tenet of public policy, as highlighted in the May 2019 Wellbeing Budget.
For more information, including the updated Framework, Second Party Opinion and Q+A, refer to the Sustainability section below.
Housing New Zealand made its re-entrance to debt capital markets in 2018, following a 19-year absence. This was made possible by the then National-led Government’s 2017 decision to increase the limit on market debt to $1.08 billion to help finance the Auckland Housing Programme. In 2018, the current Labour-led Government raised this limit to $3.05 billion to account for the state house build programme announced in the May 2018 Budget.
Access to debt capital markets is important for Housing New Zealand, given it provides the flexibility and appropriate level of control required for our stewardship responsibilities - over 45,000 of our homes are reaching the end of their useful lives over the next twenty years and need to be renewed.
Our Sustainability Financing Framework provides us with the opportunity to link financing with better outcomes for our customers' wellbeing and the environment.
S&P Global Ratings (S&P) first rated Housing New Zealand in 1996. Credit ratings are assigned to both Housing New Zealand Limited (HNZL) and Housing New Zealand Corporation (HNZC). HNZL (the issuer) is 100% owned by HNZC.
The ratings are equalised with the New Zealand Government, reflecting S&P’s view that there is an ‘almost certain’ likelihood that the New Zealand government would provide timely and sufficient extraordinary support to HNZC in the event of financial distress.
HNZC and HNZL credit ratings – latest update 31 January 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 reports:
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.
Amount on issue
|12 June 2023||2.97%||$300m||12 June 2018|
|12 June 2025||3.36%||$675m||12 June 2018|
|5 October 2026||2.247%||$500m||5 April 2019|
|18 October 2028||3.42%||$425m||18 October 2018|
Our commitment to sustainability
We are committed to sustainability through the implementation of our Customer Strategy, Environment Strategy and key measures of success outlined in the 2017-2021 Statement of Intent.
We recognise the potential for carbon emissions of buildings to contribute to global warming and acknowledge the importance of generating both positive environmental and social outcomes through our operations, build programmes and influence on our customers.
Our vision for sustainability is strategically aligned with Government commitments to international agreements, including the United Nations Paris Agreement, and Sustainable Development Goals, as well as its focus on wellbeing as a measure of living standards.
The information on this webpage is issued by Housing New Zealand Limited for informational purposes. To the extent that this webpage refers to an offer of securities, no offer is made to anyone accessing this webpage outside of New Zealand and otherwise than in compliance with any applicable securities laws or regulations. To the extent that this webpage refers to any offer of securities to any person in New Zealand, such offer will be made to only wholesale investors and in accordance with the Financial Markets Conduct Act 2013 (FMCA).
Users accessing this webpage acknowledge and accept that they will comply with any applicable securities laws or regulations (including, without limitation, the FMCA).