Listing of Wholesale Debt on the NZX

With the introduction of the updated NZX Listing Rules, issuers are now able to list their wholesale debt securities on the NZDX. These securities are debt securities where the terms of offer by the issuer limit subscription in New Zealand to wholesale investors (as defined in schedule 1 of the FMC Act) or a subset of such wholesale investors.

Having these instruments listed may allow investors to satisfy mandates that require securities to be listed and provides a branding opportunity for issuers, together with the ability to communicate with investors via NZX's market announcements platform and nzx.com. These products will be listed only, with trading continuing to occur on an OTC basis.

Being listed (but not quoted) on the NZX, issuers of wholesale debt are subject to only minimal rules requirements, significantly reducing compliance costs.

• No minimum market capitalisation or spread requirement
• No periodic reporting or continuous disclosure requirements
• No requirement for NZXR to review offer documentation

"Listing wholesale bonds on the NZX has enabled us access to global investors only mandated for listed securities. These listings have given Housing New Zealand greater prominence and created more interest in our existing, and any future debt issues” - Sam Direen, Treasurer of Housing New Zealand

The application process follows a number of simple steps and issuers can be listed within five business days and the process for further issues by existing listed issuers of wholesale debt securities is even more streamlined, as outlined in the following practice note available from NZ RegCo.