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Foreign government NZD-denominated securities application criteria

This page sets out the application criteria for acceptance of foreign government and foreign government guaranteed New Zealand dollar (NZD) denominated securities 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 the issue meets the following criteria:

  • The issuer has a subsidiary or related party within New Zealand (please provide detail).
  • For debt issuance (fixed rate bonds or floating rate notes), the issue must have a long-term AA+ rating, or better, from at least two acceptable rating agencies, and where appropriate have obtained the relevant government guarantee.
  • For commercial paper (CP) issuance, the issue must have an A-1+ rating from at least two rating agencies, and where appropriate have obtained the relevant government guarantee.
  • 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 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.

Also, we will seek a reciprocal agreement with the central bank of the relevant country to accept NZ government guaranteed securities denominated in that country's currency in its domestic 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, any other notice or communication issued about this agreement on behalf of the issuer.

Where to apply

Email applications to [email protected]