New Zealand Post is a company with over 170 years of history. Since 1987, it has operated as a State Owned Enterprise (SOE) with the NZ Government as the 100% shareholder.
Long standing history
The history of New Zealand Post dates from 1840 with the establishment of the first Post office in the Bay of Islands.
By 1984, New Zealand Post Office was a monopoly Government provider of telecommunications and postal services, and also provided a Post Office Savings Bank service, but had suffered from under-investment. The postal side was losing $20m a year and forecasts were that this would increase in the future.
In 1986, the SOE Act led to the creation of New Zealand Post Limited, Telecom Corporation of New Zealand and PostBank Limited on 1 April 1987. Telecom and PostBank were later privatised but we remain 100% NZ Government owned.
Competing in deregulated markets
In 1989, a Deed of Understanding between New Zealand Post and the Government was first established, setting out certain social, price and service undertakings to be met by New Zealand Post. The Deed of Understanding was most recently reviewed in 2013 and now requires New Zealand Post to provide a basic postal delivery service offering 3 day per week delivery to the majority of delivery points and 5 day per week delivery to the majority of rural delivery points. It also includes undertakings in relation to the size of New Zealand Post’s network of service points.
Over the years, New Zealand Post has faced several major strategic challenges. In response to each of these we've focused on doing what we do better and more efficiently.
However in the 2020s, we know we will have to adapt more rapidly in order to successfully meet the expectations of our customers.
Where we're going
The way New Zealanders use and access services is changing.
At New Zealand Post we’re changing too to better meet our customers’ needs. That means giving our customers more choice about where, when and how they do business with us and delivering different things in different ways. It also means simplifying how we work and lowering our costs.
We are committed to growing our mail and logistical and financial services business and maintaining our place as a leader in what we do.
The Board of the New Zealand Post Group currently comprises of six non-executive Directors. The two Shareholding Ministers – the Minister of Finance and the Minister of State Owned Enterprises, on behalf of the Crown, appoint the Directors considering the balance of competencies and experience on the Board and through consultation with the Chair, Rodger Finlay.
The Board is responsible to the shareholding Ministers for directing and monitoring the management and affairs of the New Zealand Post Group. Under the State Owned Enterprises Act 1986, New Zealand Post is required to operate as a successful business and specifically to achieve the following objectives:
to operate an efficient, effective and profitable business and provide to the owners a commercial return on the capital employed;
to be a good employer; and
to exhibit a sense of social responsibility by having regard to the interests of the community in which it operates and by endeavouring to accommodate or encourage these when able to do so.
The Board establishes objectives and sets strategies to achieve those objectives and monitors management’s performance against these. The Board has delegated the day-to-day management to the Chief Executive, David Walsh.
The Chief Executive, David Walsh, has appointed a senior management team to lead the organisation. This Executive Leadership Team, represents all parts of the organisation and bring to the team a wide range of experience - both internal and external to the Group. They meet together regularly to manage the execution of strategy set by the Board.
“This volume growth, and the increasing trend of New Zealanders shopping online, shows that NZ Post has a successful and exciting future. NZ Post’s previously announced investment in our network will help set us to be more efficient and continue to meet our customers' needs and help New Zealand businesses grow,” NZ Post Chief Executive David Walsh says.
NZ Post has announced a net profit after tax of $6 million following a financial year of “two halves”, with a strong operational performance in the first part of the 2019/2020 financial year, before the COVID-19 response and resulting lockdowns materially affected revenue streams.
NZ Post has this morning announced a $35 million increase in revenue due to a strong operational performance for the 2018/19 financial year and a record-breaking 12 months for its parcel delivery business, balanced against a writedown on mail assets.
View the annual and half year reports from the year 2000 and the latest investor presentations and financial updates.
Our financial year ends 30 June. All New Zealand Post Group annual reports are tabled in Parliament. The New Zealand Post Group also publishes a Half Year report covering the first six months of the financial year.
New Zealand Post Group Finance Limited has $200m of finance notes on issue with a maturity in 2039 and a coupon of 4.23%.
New Zealand Post Group Finance Limited
New Zealand Post Limited
Rating of finance notes
S&P rating of BB
Rating of Guarantor
S&P rating of A (stable outlook)
Next interest date
15 May 2020
Interest reset date
15 November 2024
15 November 2039
The Issuer of the Finance Notes is New Zealand Post Group Finance Limited (NZPGF) which is a 100% subsidiary of New Zealand Post Limited.
The Finance Notes are direct, unsecured, subordinated, redeemable, cumulative, interest bearing debt obligations of NZPGF. They are also guaranteed by the parent company, New Zealand Post Limited and as such, the Finance Notes are a direct, unsecured, subordinated obligation of New Zealand Post Limited.
The Finance Notes have a credit rating of BB by Standard & Poor’s. New Zealand Post Limited has been assigned an issuer credit rating of A by Standard & Poor’s.
The final maturity date of the notes is 15 November 2039.
Interest is paid every 6 months on 15 May and 15 November. The interest rate on issue was 7.5% and was reset on 17 November 2014 after a successful remarketing process. Reset dates occur every five years. At the reset date, the interest rate will be changed. It will change to be either:
The sum of the prevailing 5 year swap rate plus the step up margin of 3.00%; or
The result of a successful remarketing conducted prior to the reset date. This can result in:
a new margin over the 5 year swap rate being set;
certain terms of the Finance Notes being changed;
bondholders submitting a Redemption Notice having their Notes redeemed; and
certain bondholders submitting a Bid Notice having their Notes redeemed.
NZPGF may also redeem the Finance Notes early at a reset date. This is subject to various conditions detailed in the issue documentation. Mandatory redemption occurs at 15 November 2039 or in the event of default.
For more detailed information, please refer to the issue documentation:
NZX Regulation has granted New Zealand Post Group Finance Limited waivers in respect of Listing Rules 10.4.1, 10.5.1, 10.5.3 and 11.1.1.
Preliminary announcements - waiver from listing rule 10.4.1
NZX Regulation has granted New Zealand Post Group Finance waivers from the requirements to make annual and half-yearly preliminary announcements within the timeframes set out in Listing Rule 10.4.1. The waivers generally align the timeframes within which New Zealand Post Group Finance must make preliminary announcements to NZX with the financial reporting timeframes that apply to New Zealand Post Limited as a State Owned Enterprise.
Annual and half-yearly Reports - waivers from listing rules 3.5.1 and 3.6.1
NZX Regulation has granted New Zealand Post Group Finance waivers from the requirements to submit annual and half-yearly reports within the timeframes set out in Listing Rules 3.5.1 and 3.6.1. The waivers generally align the timeframes within which New Zealand Post Group Finance must submit its reports with the financial reporting timeframes that apply to New Zealand Post Limited as a State Owned Enterprise.
Restrictions on transfers - waivers from listing rule 11.1.1
NZX Regulation has granted New Zealand Post Group Finance a waiver from the prohibition on imposing restrictions on the transfer of securities contained in Listing Rule 11.1.1. The waiver means that a transfer of Notes may be refused if the transfer is not in an integral multiple of 1,000 Notes and/or results in the transferor retaining less than the minimum holding of 5,000 Notes (unless the transferor transfers all of his or her Notes).