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Kauris application criteria

This page sets out the application criteria for acceptance of Kauri 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 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 AA- from two acceptable ratings agencies—where there are more than two agencies rating the issuer and issue, at least two agencies must rate the issuer and issue as AA-.
  • For commercial paper (CP) issuance, the issuer must have a long-term rating of at least AA- and the issue/programme a short-term A-1+ rating from two acceptable rating agencies. Where there are more than two agencies rating the issuer and issue/programme, at least two agencies must rate the issuer as AA- and issue/programme as A-1+, and no issuer rating be lower than A-.
  • The issuer (other than supranationals) domiciled in one of the following jurisdictions: 
    • Austria, Australia, Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, Hong Kong, Ireland, Italy, Japan, Luxembourg, Malta, Netherlands, New Zealand, Norway, Singapore, South Korea, Spain, Sweden, Switzerland, United Kingdom and United States.
  • The issuer is an institution with which we have no supervisory conflict. That is, restricted to supranational, foreign sovereign, ‘agencies’ and semi-government issuers.
  • 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 security is not already on issue.
  • 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]