Watercare raises $540 million in Swiss bond market to support infrastructure programme

Watercare has successfully raised CHF250 million — approximately NZ$542 million, or over half a billion New Zealand dollars — through the Swiss bond market, marking its latest funding milestone as it builds a diversified, multi market debt capital markets programme to support Auckland’s water and wastewater infrastructure.

The transaction, which settled on 27 March 2026, comprises two tranches: CHF100 million with a three-year tenor and CHF150 million with a nine-year tenor.

Chief Financial Officer Angela Neeson said the transaction is part of Watercare’s ongoing debt capital markets programme and reflects continued progress in establishing a regular presence across global debt markets.

“This is another important step in building a disciplined, diversified funding programme. In less than nine months, we have established Watercare as a regular issuer across multiple markets,” she said.

“Accessing the Swiss market allows us to extend the maturity of our debt, diversify our investor base and better align our funding profile with long-dated infrastructure assets.”

Since becoming financially independent from Auckland Council on 1 July 2025, Watercare has raised approximately NZ$1.5 billion in bond funding across domestic and offshore markets. This includes a $400 million domestic bond issued in September 2025 and a A$500 million Australian bond issued in February 2026.

At the time of separation, Watercare secured $3.4 billion in committed bank debt facilities — the largest corporate debt capital raise undertaken in New Zealand — providing a strong foundation for its capital programme.

Watercare has seen strong investor demand across all markets accessed to date, achieving competitive pricing ahead of initial business plan assumptions, with estimated interest savings of over $20 million this financial year.

Watercare holds a credit rating of Aa3 from Moody’s and operates within a regulated framework, providing transparency and confidence for investors, customers and stakeholders.

Proceeds from Watercare’s capital markets programme have been used to fund this year’s capital programme, reduce interest costs and accelerate repayment of its transitional loan to Auckland Council. Since July 2025, more than $1 billion has been repaid, significantly ahead of minimum repayment requirements.

“This reflects a deliberate strategy to move from transitional funding arrangements to long-term debt capital markets funding, while maintaining strong liquidity and financial discipline,” Neeson said.

Watercare remains wholly owned by Auckland Council and continues to operate within a regulated framework that supports long-term financial discipline and investor confidence.

Watercare’s access to debt capital markets supports the delivery of essential water and wastewater infrastructure while helping to manage costs for customers. It provides greater certainty for long-term investment and enables more efficient financing of Auckland’s infrastructure programme as the city continues to grow.

Watercare will continue to engage with investors across New Zealand, Australian, Asian and European markets as it further develops its diversified debt capital markets programme.