Lombard loans in New Zealand.
Private credit against New Zealand-listed shares — pledged, not sold, with ownership retained.
A Lombard loan against New Zealand-listed shares is credit secured by a pledge of equity listed on the NZX. The holder pledges the shares as collateral, draws cash against a fraction of their market value, keeps beneficial ownership and dividends subject to structuring, and recovers the position in full on repayment.
- Lombard loans are arranged against shares listed on the NZX (NZX).
- The pledge is not a sale: ownership, dividends, and the upside stay with the holder.
- Loan-to-value is calibrated to the specific position, funded in NZD or cross-currency.
- Structured under the FMA regime, with disclosure from 5%.
Eligible collateral and venues
Lombard Financing arranges facilities against equity listed on the principal New Zealand venue: New Zealand's Exchange (NZX) (NZX). Eligibility at the position level turns on the liquidity and free float of the specific line, its volatility, and the size of the holding relative to its typical traded volume — the same variables that drive the loan-to-value.
Regulator and disclosure
Shares listed in New Zealand are regulated by Financial Markets Authority (FMA). Substantial-shareholding disclosure is triggered from 5%, and a pledge over a large line is structured with that reporting regime in view so that the transaction remains discreet and compliant. Where a holding sits near a control or takeover threshold, the structure is arranged to avoid disturbing the position.
Funding, custody, and structuring
Facilities are typically arranged for a tenor of twelve to thirty-six months, funded in NZD or in another currency on a cross-currency basis. Throughout the facility the pledged shares are held by a qualified custodian under bankruptcy-remote arrangements, so the security is clean and the holder’s ownership is preserved. Non-recourse, limited-recourse, and full-recourse structures are available, and the choice interacts with the loan-to-value and the pricing.
| Listing venue(s) | New Zealand's Exchange (NZX) (NZX) |
|---|---|
| Regulator | Financial Markets Authority (FMA) |
| Currency | NZD (cross-currency available) |
| Disclosure threshold | From 5% substantial-holding disclosure |
| Principal indices | S&P/NZX 50, S&P/NZX All Index |
| Indicative tenor | 12–36 months, renewable by agreement |
| Recourse | Non-recourse / limited-recourse / full-recourse |
Considering a Lombard loan against a New Zealand-listed position?
Request terms →Lombard loans across Asia-Pacific.
On this market, specifically.
Disclosure and regulation
New Zealand-listed shares sit under the Financial Markets Authority, with substantial-holding notices required under the Financial Markets Conduct Act 2013 (Section 274) at 5% and on each 1% change — a regime that closely tracks its Australian neighbour. Because the market is a concentrated set of roughly fifty large issuers, a substantial private holding can represent a meaningful share of a single name, so the disclosure position is watched closely and the Lombard loan is arranged to keep beneficial ownership, and the notification register, undisturbed. Where the issuer is also listed on the ASX, both jurisdictions’ reporting obligations are considered together.
An illustrative example
Consider a private holding of NZD 30 million in an S&P/NZX 50 constituent. At an illustrative loan-to-value of 45% — within the disclosed 20–65% range, and set conservatively to reflect a concentrated index and thinner secondary liquidity — the facility releases roughly NZD 13 million while the shares remain pledged and owned. Funding can be drawn in NZD or on a cross-currency basis. The holder retains dividends and the upside, and recovers the position in full on repayment; the modest advance rate reflects the line, not the client.
Illustrative only — not an offer, a quotation, or a commitment to lend.