Kiwi bonds are the main product available to individual investors. Kiwi bonds are offered directly to the New Zealand public. Anyone resident outside New Zealand, even if they hold New Zealand citizenship, is ineligible to invest in Kiwi bonds.
Kiwi bonds are a simple form of investment, similar to a term deposit in that they offer a fixed rate of interest for a given term. Kiwi bonds are denominated in New Zealand dollars with a fixed interest rate paid quarterly in arrears. The bonds are redeemable on maturity or at the option of the bondholder.
Kiwi bonds are issued in six month, and one and two-year maturities. The minimum amount that can be invested is $1,000 with a maximum of $500,000 in any one issue. Interest rates are set periodically by the New Zealand Debt Management Office (NZDMO) from the moving averages of domestic wholesale rates.
The interest rates offered are generally lower than those offered by banks, reflecting the greater level of security associated with a government investment. Kiwi bonds are available only to New Zealand residents.
From 19 May 2011, the New Zealand Government has offered a four-year earthquake Kiwi bond. This is like the other Kiwi bonds however the money invested in this maturity will go towards meeting the costs to the Government of the recovery in Christchurch following the earthquakes of 4 September 2010 and 22 February 2011.
If you are a New Zealand resident and would like to know more about Kiwi bonds, further information is available in the Product Disclosure Statement (dated 10 November 2016) and the current application form (issue number 105, updated 18 November 2016).
Registrar Contact Details for Kiwi bonds
If you are an individual investor and would like to invest in Kiwi bonds, please contact Computer Share, NZDMO’s approved agent and registrar for Kiwi bonds.
The Manager, Fixed Interest Registry
Computershare Investor Services Limited
Level 2, 159 Hurstmere Road
Private Bag 92119
Tel: +64 9 488 8777
Fax: +64 9 488 8787
Free phone in New Zealand: (0800) 655 494