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Bank security application criteria

This page sets out the application criteria for acceptance of bank security in our domestic operations.

Information required

  • Background on the issuer (including all ratings).
  • Details of the issue as provided in an issue notice, prospectus and/or information memorandum. This information should include: 
    • full legal name of issuer
    • physical and postal address
    • description
    • issue size
    • pricing convention (full details)
    • currency
    • arranger
    • dealers
    • registrar
    • paying agent
    • term
    • clearing system
    • governing law
    • redemption
    • payments and record date
    • listing (stock exchange if any).


Confirm that the issue meets the following criteria:

  • For debt issuance (fixed rate bonds or floating rate notes), the issuer and issue have a long-term rating of at least BBB- from at least two acceptable ratings agencies. Where there are more than two agencies rating the issuer and issue, all agencies must rate the issuer and issue at least BBB-.
  • For commercial paper (CP) issuance, the issuer and issue/programme must have a short-term rating of at least A-2 from at least one acceptable ratings agency. Where there is more than one agency rating the issuer and issue/programme, all agencies must rate the issuer and issue/programme at least A-2.
  • The issue is plain vanilla. For example, a bond with no optionality and not sub-ordinated.
  • The issue's pricing convention follows our price and yield formulae—in particular fixed rate bonds must have either a quarterly or semi-annual coupon. You can find formulas in the Appendices of the operating rules and guidelines.
  • The issue is denominated in New Zealand dollars.
  • The issue will be lodged in NZClear. Eligibility criteria for lodgement into NZClear include having a suitable registrar and paying agent (not the Reserve Bank).
  • The issue has more than three days to maturity. 

Other considerations

Resident withholding tax certificate

As is usual for securities in NZClear, only NZClear members with a valid resident withholding tax certificate are allowed to hold these securities in the NZClear depository.

Subsequent issues of the same security will not require our approval.

Right of refusal

We reserve the right to refuse an application for any reason and do not have to disclose our reasons. In particular, if the credit rating of the issuer/issue falls below our threshold, then the issue will no longer be eligible in our market operations.

Authorised signatories

Authorised signatories of the issuer must sign the information provided above. We require a list of authorised signatories for the issuer and receive satisfactory evidence both in form and substance that the issuer's authorised signatories have the authority to execute this agreement and any other notice or communication issued about this agreement on behalf of the issuer.

Where to apply

Email applications to [email protected]