Air New Zealand Limited Retail Bond Offer

Monday 17th October 2022

Air New Zealand Limited (Air New Zealand) is pleased to announce that it is making an offer of up to NZ$75 million (with the ability to accept oversubscriptions of up to an additional NZ$25 million at Air New Zealand’s discretion) of 5.5 year, unsecured, unsubordinated, fixed rate bonds maturing on 27 April 2028 (Bonds) to institutional investors and New Zealand retail investors (the Offer). The Bonds are expected to be quoted on the NZX Debt Market under ticker code AIR030.

The Offer opens today and will close on Thursday, 20 October 2022. The Offer is made pursuant to clause 19 of Schedule 1 of the Financial Markets Conduct Act 2013 as an offer of debt securities of the same class as Air New Zealand’s NZ$50,000,000 unsecured, unsubordinated, fixed rate bonds maturing on 28 October 2022 (with a fixed rate of 4.25% per annum), which are currently quoted on the NZX Debt Market under ticker code AIR020 (AIR020 Bonds). The last day of trading in the AIR020 Bonds was 14 October 2022 due to the upcoming maturity date for those bonds.

The notice required by the Financial Markets Conduct Regulations 2014 has been provided to NZX with this announcement.

The interest rate for the Bonds will be a fixed interest rate, being the sum of the margin (which may be above or below the indicative margin range set out below) and the base rate, subject to a minimum interest rate of 6.00% per annum. The current indicative margin range is 1.50% to 1.65% per annum.

The margin and interest rate for the Bonds will be set following a bookbuild process, which is expected to be completed on Thursday, 20 October 2022 (Rate Set Date), and the interest rate and margin will be announced by Air New Zealand via the NZX shortly thereafter.

There is no public pool for the Offer (whether via an online website, platform or otherwise), with all of the Bonds (including oversubscriptions) reserved for subscription by clients of the joint lead managers (JLMs), institutional investors and other primary market participants invited to participate in the bookbuild.

Full details of the Offer are contained in the indicative terms sheet which has been prepared for the Offer, along with the investor roadshow presentation, which have been lodged with NZX with this announcement. These documents are also available through https://www.airnewzealand.co.nz/bond.

Interested investors should contact a JLM as listed below or their usual financial adviser for more details.

Joint Lead Managers

ANZ Bank New Zealand Limited

Jarden Securities Limited

Forsyth Barr Limited

Westpac Banking Corporation (ABN 33 007 457 141) (acting through its New Zealand branch)

Ends.

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