Investor Relations

Published: 8 March 2019

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 64,000 properties that house more than 185,000 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.

Latest news

Development of Housing New Zealand’s Sustainability Financing Framework

Housing New Zealand Corporation today announced it has developed and published a Sustainability Financing Framework (Framework) to support the financing of its state housing build programme. The Framework will further embed sustainability considerations across the business activities of Housing New Zealand Corporation and its subsidiaries, including Housing New Zealand Limited (together, HNZ).

The Framework enables Housing New Zealand to raise finance through the issuance of green, social and sustainability bonds, as well as green loans, with proceeds earmarked for expenditures that will deliver positive environmental and social outcomes. The Framework aligns with Government objectives and international commitments such as the 2015 Paris Agreement and the United Nations Sustainable Development Goals (SDGs).

Housing New Zealand has developed the Framework in alignment with:

  • International Capital Market Association Green Bond Principles (GBP)
  • Social Bond Principles (SBP)
  • Sustainability Bond Guidelines (SBG), and
  • Loan Market Association Green Lending Principles (GLP).

Sustainalytics has provided a Second Party Opinion for the Framework. BNZ is the Arranger of the Sustainability Financing Programme.

Housing New Zealand intends to meet with investors in the near future to discuss the Framework and a bond transaction may follow in due course, subject to liquidity considerations and market conditions.

Read more in the Sustainability section below.

Financing

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.

In addition to standard domestic bond issuance, our newly-established Sustainability Financing Framework provides us with the opportunity to link financing with better outcomes for our customers and the environment. Future issuance in sustainability format will be considered alongside our commitment to continue building liquidity in standard bond maturities.

 

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

Rating type Rating Outlook
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.

Maturity

Coupon

Amount on issue

Issue date

12 June 2023 2.97% $300m 12 June 2018
12 June 2025 3.36% $250m 12 June 2018
18 October 2028 3.42% $250m 18 October 2018

Term sheets:

1 June 2018 - 2023 and 2025 maturities [PDF, 631 KB]

12 October 2018 - 2023 and 2028 maturities [PDF, 703 KB]

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.

Key documents

Further enquiries

If you have any enquiries, email us at treasury@hnzc.co.nz. For media enquiries, email media@hnzc.co.nz

Disclaimer

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).

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