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Our annual NZX Top 50 Funding Composition report collates financial information from the Top 50’s annual reports as at 31 December 2020, and analysis from our direct experience advising Top 50 entities on their debt funding requirements.
Our report shows a clear contrast between the Top 25’s security position and that of the Second 25, reflecting the superior credit rating available to New Zealand’s largest companies. Other findings include:
- many among the Top 50 opted as part of their COVID response to increase or extend their funding arrangements and/or to raise equity or to pay down debt
- in some cases, this was a strategic decision, rather than being forced by circumstance, and the buffer capability was not activated
- entities with a range of creditors had more difficulty as getting a majority to agree to the same change of terms was often arduous and expensive, and
- the New Zealand retail bond market remains slow.
The New Zealand economy has performed relatively well during the pandemic to date and business confidence is rising in all but the most affected sectors.