Watercare raises €500 million in debut euro bond issue

Watercare has successfully raised €500 million, approximately NZ$1 billion, through its inaugural euro bond issue, expanding its access to international investors and completing its entry into the major funding markets it expects to use regularly in the years ahead.

The seven-year fixed-rate bond attracted strong demand from a diverse group of high-quality European investors.

Chief Financial Officer Angela Neeson says the transaction is an important step in broadening Watercare's access to long-term funding.

“This transaction completes our initial establishment across the key markets we expect to access regularly. Establishing a presence in the euro market gives us access to a broad international investor base and another reliable source of long-term funding.

“As Auckland grows, so does the need to invest in the networks, treatment plants and infrastructure that support the city. Expanding our funding base helps ensure we can continue to deliver that investment over the long term.”

Watercare is delivering a $15.2 billion capital investment programme over the 10 years from FY2027 to FY2036. The programme includes more than 1000 projects across nine major infrastructure programmes, covering the renewal of ageing assets and new infrastructure to support growth, resilience and environmental outcomes.

The euro proceeds will support this capital programme and further repayment of Watercare's transitional loan from Auckland Council. Since becoming financially independent from the council on 1 July 2025, Watercare has progressively replaced transitional funding with longer-term capital markets funding.

The euro transaction follows Watercare's entry into the New Zealand, Australian dollar and Swiss franc bond markets. Together, these markets provide a diversified funding base and reduce reliance on any single source of finance.

“We have taken a deliberate approach to establishing Watercare in a small number of core markets and building lasting relationships with investors,” says Neeson.

“We expect New Zealand, Europe and Australia to remain central to our funding programme, with other markets considered when they offer good value. This balanced approach gives us flexibility as we fund a sustained period of investment in Auckland's water infrastructure.”

Watercare holds a credit rating of Aa3 from Moody's, with a stable outlook, and operates within a regulated framework.