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Kiwi Property is one of the largest listed property companies on the New Zealand Stock Exchange and a member of the S&P/NZX 20 Index. It owns and manages a portfolio of mixed-use, retail and office buildings, and states that its objective is to provide investors with a reliable investment in New Zealand property through the ownership and active management of a diversified, high-quality portfolio. The company has been operating for more than 30 years and is licensed under the Real Estate Agents Act 2008.
Kiwi Property Group Limited is offering up to NZ$150 million of seven-year fixed-rate senior secured green bonds, with up to NZ$50 million of oversubscriptions at the company’s discretion. The offer opened to institutional and New Zealand retail investors under the Financial Markets Conduct Act 2013, as an offer of debt securities of the same class as existing quoted debt securities.
The indicative margin range is 1.20% to 1.30% per annum, subject to a minimum interest rate of 5.55% per annum. The actual margin and interest rate are expected to be announced via NZX on 23 October following a bookbuild process. The offer is expected to close on 23 October.
The bonds are expected to be quoted on the NZX Debt Market and assigned an issue credit rating of BBB+ by S&P Global Ratings. Kiwi Property noted that a rating is not a recommendation by any rating organisation to buy, sell or hold its securities, and that its corporate credit rating is current as at the date of the announcement. That rating, together with any rating ascribed to the green bonds, may be suspended, revised or withdrawn at any time by S&P Global Ratings.
Full details of the offer are set out in an indicative terms sheet released with the announcement.
There is no public pool for the offer. All the green bonds are reserved for clients of the joint lead managers, NZX participants and other approved financial intermediaries, and the company directs interested investors to contact their usual financial adviser for more details.
Craigs Investment Partners Limited is the arranger and joint lead manager. The joint lead managers are ANZ Bank New Zealand Limited, which is also green bond co-ordinator, Bank of New Zealand and Forsyth Barr Capital Markets Limited.
The raise provides Kiwi Property with a longer-dated funding line alongside its existing quoted debt, and it is structured as a green bond, tying the proceeds to the company’s stated environmental credentials rather than to general corporate purposes.
For investors, the indicative margin range and the 5.55% minimum interest rate are the numbers to watch, and both are settled at bookbuild rather than at launch. The BBB+ expected issue rating sits in investment-grade territory, which is the band most New Zealand institutional investors and many retail investors work within.
For small and medium businesses, the practical detail is the distribution. With no public pool, a business owner wanting an allocation cannot apply directly through a public offer; the route runs through a financial adviser or an approved intermediary, and the offer is expected to close on 23 October.
Fraser Gunn, head of strategic finance and investor relations, is the point of contact for further information about the offer.
Source: NZX announcements
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