The New Zealand Financial Markets Authority (FMA) has granted a class exemption intended to provide a faster and more cost-effective route to market for issuers offering green, social, sustainability or sustainability-linked (GSSS) bonds. Under the exemption notice, an issuer can make an offer of bonds that are identical to existing quoted bonds, except for a different interest rate, redemption date and GSSS status, without having to prepare a product disclosure statement. The approach is framed as aligning with the Financial Markets Conduct Act ‘same class’ exclusion, while recognising that GSSS bonds are not treated as the same class as “vanilla” bonds even where other terms are identical. The exemption is subject to conditions, including that investors must be provided with information about the bond’s GSSS status, which the FMA indicated could be delivered via a separate, shorter terms sheet.
New Zealand Financial Markets Authority 2026-03-31
New Zealand Financial Markets Authority grants class exemption easing disclosure requirements for green and social bond offers
The New Zealand Financial Markets Authority has granted a class exemption to provide a faster, more cost-effective route to market for issuers of green, social, sustainability or sustainability-linked bonds. The exemption allows offers of bonds identical to existing quoted bonds, except for interest rate, redemption date and GSSS status, without a product disclosure statement, subject to conditions including provision of information on the bond’s GSSS status, which may be delivered via a shorter terms sheet.