Watercare prices $400 million bond to support infrastructure investment

Watercare has today priced a five-year, fixed-rate, wholesale bond to the market under its domestic medium-term note programme.

The transaction was well received by the market, with an issue amount of $400 million that was competitively priced.

“This bond issuance is a key step in our financial strategy,” says Watercare chief financial officer Angela Neeson. “It allows us to refinance part of the transitional loan from Auckland Council and helps fund our infrastructure programme.”

The ability to borrow enables Watercare to keep prices lower than would otherwise be possible, while providing greater certainty in delivering new and upgraded infrastructure for Tāmaki Makaurau.

“Our financial independence means we can plan and invest with confidence,” says Neeson. “This supports our ongoing focus of delivering reliable water and wastewater services across Auckland.”

Ahead of the bond issuance, Moody’s assigned a (P)Aa3 rating to Watercare’s senior secured domestic medium-term note programme. Moody’s also affirmed Watercare’s Aa3 issuer rating, its baseline credit assessment of baa1, and its P-1 commercial paper programme. The outlook on the company’s ratings remains stable.

The bond issuance was jointly led by Bank of New Zealand, Commonwealth Bank of Australia, and Westpac. Legal advice was provided by Mayne Wetherell.

This pricing follows Watercare’s financial separation from Auckland Council on 1 July 2025. At that time, the company completed New Zealand’s largest corporate debt capital raise, securing $3.4 billion in committed bank debt facilities.

The bond issuance and debt capital raise support Watercare’s $13.8 billion infrastructure investment outlined in its 10-year Business Plan. The plan includes more than 1,000 projects aimed at ensuring reliable water and wastewater services, supporting population growth, and reducing the frequency of wastewater overflows onto land and into waterways.