Air NZ issues A$550M medium term notes as part of recap

Stock exchange listings: New Zealand (NZX: AIR) / Australia (ASX: AIZ) / ADR (OTC: ANZLY)


MARKET ANNOUNCEMENT
26 May 2022


Air New Zealand issues inaugural A$550 million medium term notes,
completing its NZ$2.2 billion recapitalisation package

Air New Zealand has successfully completed its inaugural Australian Medium-Term Notes
issuance, securing debt funding of A$550 million or approximately NZ$600 million (“AMTN
issuance”). The intention to undertake the AMTN issuance was first announced on 30 March 2022
as part of Air New Zealand’s comprehensive NZ$2.2 billion recapitalisation package.

The AMTN issuance comprises two tranches; A$300 million of 4 year fixed rate bonds maturing on
25 May 2026 and A$250 million of 7 year fixed rate bonds maturing on 25 May 2029.

This was Air New Zealand’s inaugural issue using its Australian debt issuance programme and
represents a further diversification of the airline’s funding markets. The transaction was open to
institutional investors only and has been rated Baa2 by Moody’s.

Australia and New Zealand Banking Group Limited, Citigroup Global Markets Australia Pty Limited,
Commonwealth Bank of Australia and MUFG Securities Asia Limited acted as joint lead managers
on the transaction.

Following receipt of approximately NZ$600 million in proceeds, Air New Zealand has today issued
a notice to the New Zealand Government to redeem NZ$400 million of Redeemable Shares issued
to the Crown in April and May 2022. Following completion of this redemption, which is expected
occur on 2 June 2022, NZ$200 million of Redeemable Shares will remain on issue to the Crown
and are able to be redeemed at a future date to be determined by the airline subject to a final
redemption date of December 2046.

Completion of the AMTN issuance and partial redemption of the Redeemable Shares is in line with
the announcement made to the market on 30 March 2022

Air New Zealand Chair Dame Therese Walsh, said “the completion of our inaugural AMTN issuance
marks the completion of the airline’s recapitalisation package, and the start of an exciting chapter
in our recovery. With both domestic and international bookings currently showing good momentum
and our first 7 weeks of international flights already under our belt since borders reopened, we are
excited for the future, and more determined than ever to rebuild a fitter, stronger Air New Zealand.”

Ends.

This announcement is authorised for release by:
Jennifer Page
General Counsel & Company Secretary
Jennifer.page@airnz.co.nz


For Investor Relations enquiries:
Leila Peters, General Manager Corporate Finance
leila.peters@airnz.co.nz

For media enquiries, please contact:
Air New Zealand Communications.
Email: media@airnz.co.nz │ Phone: +64 21 747 320 │ Twitter: @AirNZMedia