Air New Zealand Bond, 2028

Air New Zealand is majority owned by the Crown and issues bonds to New Zealand retail investors. The coupon reflects genuine business risk: aviation is capital-intensive, fuel-price exposed, and highly sensitive to demand shocks.

Crown majority ownership is not a Crown guarantee, and the airline's 2020–21 recapitalisation is a useful reminder of that. The shorter maturity partly offsets the credit risk by returning capital sooner.

Interest is paid semi-annually. The 2028 line trades on the NZX Debt Market through a sharebroker in parcels from $5,000.

Air New Zealand Bond, 2028 is bought and sold through a New Zealand sharebroker rather than direct from the issuer. You pay the prevailing market price plus brokerage, which is why the yield to maturity above differs from the 6.50% coupon.

Held to October 2028, you receive the scheduled interest and face value at maturity, assuming the issuer meets its obligations. Sold earlier, you receive whatever the market pays that day — higher if interest rates have fallen, lower if they have risen. Listed does not guarantee liquid, so the prudent assumption is that you hold to maturity.

This bond ranks as senior unsecured. Ranking determines where you stand relative to other creditors if the issuer runs into trouble, and it matters more than the headline rate.