NZ’s first statutory covered bond

Author: Ashley Lee | Published: 26 Jun 2014
Westpac is the first to test New Zealand’s covered bond law
Westpac New Zealand’s covered bond was the first under the country’s covered bond legislation. More statutory deals are expected soon.

Under the covered bond law, passed in December last year, banks must register their programmes with the Reserve Bank of New Zealand (RBNZ). All offerings are to be under New Zealand’s statutory framework.

Westpac New Zealand was the first to register its programmes and issue under its statutory framework. Its €750 million five-year deal was reported to achieve the tightest spread and lowest coupon of any of the country’s covered bonds to-date.

Structurally, the Westpac bonds are no different...