We’re proud to have advised Watercare on New Zealand's largest corporate debt capital raise, securing $3.4 billion of committed bank debt facilities, as the organisation achieves groundbreaking financial separation from Auckland Council.

The arrangements support Watercare’s financial independence from Auckland Council today under the government’s Local Water Done Well policy framework, making the organisation the first financially independent water entity in the country.

Watercare announced this morning it had secured major committed debt and liquidity facilities from debt providers on the strength of a credit rating of Aa3 issued by Moody’s and a competitive bank debt capital raising process involving leading local and international banks. 

Watercare has also entered into a transitional debt facility under which it will pay back the $4 billion it owes to Auckland Council over the next five years. 

Banking & Finance Partner, Josh Cairns says: "This trailblazing deal represents New Zealand's largest corporate debt capital raise and a significant milestone under Local Water Done Well. 

“It's an excellent result for all Aucklanders, delivering competitive funding rates that will result in the investment and delivery of reliable water and wastewater services over the long term.

"The scale and complexity of this transaction is a huge credit to the Watercare team and demonstrates the sophistication of our local capital markets.  It involved the establishment of a major financing platform for the purposes of Watercare’s initial debt capital raise as well as its future debt capital markets programme.

“Simpson Grierson is extremely proud to have supported Watercare to achieve this timely result, which will support the implementation of its ambitious $13.8 billion Business Plan," says Josh.

Watercare's new Business Plan outlines an ambitious $13.8 billion investment over the next 10 years, including over 1,000 projects aimed at ensuring reliable water and wastewater services for Auckland as its population grows. This investment will help keep the environment healthy by reducing the frequency of wastewater overflows onto land and into waterways.

Supporting Josh on the transaction were Senior Associate Catherine Shipton and Solicitor Ishma Nasheed.