EDC Issues Its First New Zealand Dollar Kauri Bond

News Release

(OTTAWA) November 23, 2007 Export Development Canada (EDC) announced today that it has launched a 375 million New Zealand Dollar Kauri Bond on Tuesday, the first in its corporate history. A Kauri bond is one that is placed by a foreign issuer in the New Zealand domestic market.
The 3-year bond was a syndicated transaction lead-managed by Bank of New Zealand and RBC Dominion Securities Inc. Co-lead managers were ABN Amro Bank N.V., Deutsche Bank A.G., New Zealand Branch and Toronto Dominion Bank, Australia Branch.
"Diversifying EDC's investor base is a strategic priority, and placing bonds with new investors located in New Zealand has provided an excellent opportunity to expand EDC's market presence," said Marie MacDougall, Vice-President and Treasurer. "International investors responded quickly and positively to acquire high quality AAA/Aaa Canada credit denominated in New Zealand dollars."
The geographical distribution of the placement was 39 per cent domestic and 61 per cent international investors. Proceeds from the bond will be used to support EDC's funding needs that will enable EDC to facilitate the commercial needs of Canadian exporters and investors that would like to do more business internationally, which will help to grow Canada's export trade.
The bonds were issued at a price of 99.908501 per cent and will pay a coupon of 8.125 per cent per annum through semi-annual payments. This gives investors a yield of 8.16 per cent (s.a.), equivalent to a spread of 113 basis points above the underlying NZGB 6.0 per cent 15 Nov 2011 bond. Summary terms and conditions for the new Kauri bond issue:
Amount: NZD 375 millionSettlement date: Nov 30, 2007Maturity date: Nov 30, 2010Issue / re-offer price: 99.908501 per centYield: 8.16 per centCoupon: 8.125 per centDenomination: NZD100,000Format: Registered notesListing: NoneClearing systems: Austraclear
EDC is Canada's export credit agency, offering innovative commercial solutions to help Canadian exporters and investors expand their international business. EDC's knowledge and partnerships are used by 6,400 Canadian companies and their global customers in up to 200 markets worldwide each year. EDC is financially self-sustaining and is a recognized leader in financial reporting, economic analysis and has been recognized as one of Canada's Top 100 Employers for seven consecutive years.
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Media contact:
Phil TaylorEDC Public Affairs(613) 598-2904ptaylor@edc.ca

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2016-12-15

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EDC Issues Its First New Zealand Dollar Kauri Bond

News Release

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