IFLR 1000
The Guide to the World's Leading Financial Law Firms

	Bell Gully Chapman Tripp
	Buddle Findlay Russell McVeagh Simpson Grierson
	Dawson Harford & Partners Harmos Horton Lusk Mayne Wetherell Minter Ellison Rudd Watts

The recent vulnerability in the market has created a situation where many corporate borrowers have moved into the bond markets to secure financing as opposed to using traditional bank lending.

The country is undergoing a significant period of legal reform in the securities area and the next twelve months will see the introduction of the Financial Markets Authority and a complete rewrite of the Securities Act. It is expected that this should streamline disclosure documents and make it more straightforward for companies to raise capital.

The current economic downturn continues to affect the equity capital markets with no significant IPOs succeeding in coming to market so far in 2011.

Global IPO markets though have been reasonably active and this may encourage more domestic companies to look to list on the New Zealand Exchange ahead of state owned enterprise sell downs, should the government be re-elected in the upcoming elections.

In the debt capital markets, one standout transaction had eight local authorities in the Auckland region merge to create a new super-council: Auckland Council. The merged entity faces more than NZ$500 million ($414 million) of debt refinancing, which needs to be dealt with in the next 12 months, as well as major projects to fund. Immediately before the merger, funding was raised by an issue of retail listed secured bonds of NZ$350 million by one of the constituent local authorities, Manukau City Council.

So, despite the economic challenges and the uncertainty prevalent in the wake of the Christchurch earthquakes, one should expect the market to see increasing levels of capital market activity as the year progresses.

Bell Gully remains in the top tier this year after strong feedback from peers and clients alike: "Bell Gully is New Zealand's premier legal firm across the spectrum and also in capital markets work," says one client. "Unparalleled expertise and experience in capital markets" with a "strong team culture and outstanding leadership from management", adds another.... [more]

Bell Gully remains in the top tier this year after strong feedback from peers and clients alike: "Bell Gully is New Zealand's premier legal firm across the spectrum and also in capital markets work," says one client. "Unparalleled expertise and experience in capital markets" with a "strong team culture and outstanding leadership from management", adds another.

Last year the team advised DNZ Property Fund on its IPO and listing on the New Zealand stock exchange (NZX), the largest domestic IPO in 2010 and one of only two to reach completion. The deal also featured a follow-on capital raising for this portfolio investment entity.

Another notable highlight saw the team advise Goodman Fielder on a NZ$250 million ($206 million) senior unsecured fixed rate bond issue to the New Zealand public through subsidiary Goodman Fielder New Zealand. The bond issue was a key component in the company's wider debt re-financing programme for 2010.

"A strong team that excels technically and delivers services in a clear and client focussed manner," was one client's view of the team's work. "They are always aware of our expectations and deliver accordingly. They just deliver a solution to a success," comments another.

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With Chapman Tripp's team already containing John Strowger, "regarded as the capital market expert in New Zealand", according to one peer, the team is well placed in the market, but it did not rest on its laurels and over the past 12 months strengthened its offering with the hire of former Russell McVeagh partner Ross Pennington, who is "highly regarded as one of the best debt capital markets practitioners", says a rival partner.Clients are certainly impressed with the team's offering: "Chapman Tripp has better depth than other firms we use and have very good technical knowledge," says one.... [more]

With Chapman Tripp's team already containing John Strowger, "regarded as the capital market expert in New Zealand", according to one peer, the team is well placed in the market, but it did not rest on its laurels and over the past 12 months strengthened its offering with the hire of former Russell McVeagh partner Ross Pennington, who is "highly regarded as one of the best debt capital markets practitioners", says a rival partner.

Clients are certainly impressed with the team's offering: "Chapman Tripp has better depth than other firms we use and have very good technical knowledge," says one. "They are technically very strong, detailed and relevant to the client's needs, and have a broad knowledge across all relevant issue parameters."

The firm was entrusted with advising CBG Trustee Company as the guarantor on its BNZ covered bond programme last year valued at an initial NZ$3 billion ($2.4 billion) rising to NZ$7 billion. This was the first covered bond programme established by a New Zealand issuer and the ownership structure is likely to be used as a template on future issuances by New Zealand banks. The structure seeks to limit the recourse of contingent creditors to the Public Trust by creating a separate company which is owned and controlled by a new trust of which Public Trust is the trustee.

Another notable highlight was acting for listed AMP NZ Office Trust (ANZO) on its conversion to a limited company, the first ever conversion of a listed property trust into an externally-managed listed property company. The work involved a number of very novel regulatory approvals in both New Zealand and Australia.

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The departure of Jason Boyes last year, who left for an in-house position at Infratil, had a few observers questioning the firm's capacity in capital markets. Clients however still have a strong belief in the team's capability: "It's high-quality service, broad range, corporate work, capable staff and experienced partners.... [more]

The departure of Jason Boyes last year, who left for an in-house position at Infratil, had a few observers questioning the firm's capacity in capital markets. Clients however still have a strong belief in the team's capability: "It's high-quality service, broad range, corporate work, capable staff and experienced partners... I regard them very highly," says one. Another agrees: "Buddle Findlay is top-notch and extremely good, I would say that you get solid and reliable advice. I think that they're probably one of the leaders in the market."

The past year saw the firm advise Greenstone Energy on a senior bond issue of up to NZ$100 million ($82 million) senior secured listed bonds, with the ability to accept oversubscriptions of up to NZ$100 million in the conduit funding structure.

Other deals included advising Westpac on its covered bond programme. This NZ$8.8 billion transaction was the second ever covered bond programme established by a New Zealand bank to issue to European investors.

The team also acted for Infratil Infrastructure Bonds. Work included issuing two tranches of unsecured, unsubordinated convertible fixed interest rate infrastructure bonds of NZ$100 million due 2016 and NZ$50 million due 2017.

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"Russell McVeagh is recognised as a leading legal firm and their works reflect that", says a client. The team has always had a great reputation and "their service and responsiveness are second to none", according to a clientObservers were particularly worried for the capital markets team with the high profile departures of Garth Sinclair and Ross Pennington, who both left the partnership in late 2010.... [more]

"Russell McVeagh is recognised as a leading legal firm and their works reflect that", says a client. The team has always had a great reputation and "their service and responsiveness are second to none", according to a client

Observers were particularly worried for the capital markets team with the high profile departures of Garth Sinclair and Ross Pennington, who both left the partnership in late 2010. Both are highly regarded and commentators are waiting to see how the firm reacts.

Despite these setbacks, the firm had a busy year, taking the lead role in structuring New Zealand and Australia's first ever covered bond programme along with initial issues by Bank of New Zealand (BNZ) of NZ$425 million ($348 million) of covered bonds and by BNZ-IF, of €1 billion ($1.4 billion) of covered bonds.

New Zealand has no legislative framework for covered bonds so the transactions had to be structured on contractual principles, making use of securitisation techniques. The Reserve Bank of New Zealand has proposed that covered bonds either be standardised on the structured model developed for BNZ or that a legislative framework be introduced to address insolvency and statutory management issues.

Another notable highlight saw the team advise Westfield on a group restructure involving the distribution of A$7.3 billion ($7.4 billion) of capital to security-holders, along with an A$2 billion offer of stapled units in the new Westfield Retail Trust to the public.

The deal included a A$1.5 billion offer of stapled units to security-holders and involved a major equity raising and a significant group restructuring, both with complex cross-border legal issues. The group restructure involved the transfer of 50% of the Australian and New Zealand shopping centre assets of the Westfield Group to the new Westfield Retail Trust.

"We have worked with Russell McVeagh when they have been representing our clients as issuers of complex financial structures, I find that they are able to break down and simplify all the complex matters."

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Simpson Grierson is "more of a traditional law firm focussed on producing good quality work", says a client. The team retains its position in tier two after positive feedback.... [more]

Simpson Grierson is "more of a traditional law firm focussed on producing good quality work", says a client. The team retains its position in tier two after positive feedback. "The firm produces high quality work and is on par with other first tier firms used in other parts of the world," says one client.

Where a rival partner notes that "Simpson Grierson doesn't muck around", a client sees "a high level of knowledge and expertise in New Zealand matters, especially in the banking and finance space".

In November 2010, the team advised Manukau Council, Auckland Transitional Agencyon and the newly formed Auckland Council authority on their bond issues. Eight local authorities in the Auckland region merged to create a new super council last year. The combined Council faced more than NZ$500 million ($400 million) in debt refinancing. As part of the transition, interim funding was raised by one of the constituent local authorities, Manukau City Council through a NZ$350 million secured bond issue.

The team also acted for TEL as debenture trustee on the public bond issue by Greenstone Energy Finance. The deal required the establishment of a bond programme and the initial issue of NZ$100 million plus NZ$100 million in oversubscriptions through guaranteed secured bonds by Greenstone.

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"Mayne Wetherell's combination of leading partners across multiple disciplines and the ability for all of their expertise to be accessed from our perspective" is one of the reasons clients really appreciate the team.The team advised Commonwealth Bank of Australia and Westpac Banking in the NZ$400 million ($325.... [more]

"Mayne Wetherell's combination of leading partners across multiple disciplines and the ability for all of their expertise to be accessed from our perspective" is one of the reasons clients really appreciate the team.

The team advised Commonwealth Bank of Australia and Westpac Banking in the NZ$400 million ($325.2 million) restructuring of Motor Trade Finances' automotive loan and automotive lease receivable securitisation programme. This is the first major automotive securitisation programme since the global financial crisis.

Another notable highlight saw the team successfully advising NZF Homeloans on the establishment of the NZF bond issuance trust and the issue of NZ$100 million of notes.

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With the success and reputation of the capital markets team, some of Minter Ellison Rudd Watts' clients include Goldman Sachs, NZX, Allied Farmers and PSIS. This year the team acted for PSIS a leading New Zealand non-bank deposit taker on the issue of NZ$100 million ($81 million) of AAA rated RMBS to institutional investors.... [more]

With the success and reputation of the capital markets team, some of Minter Ellison Rudd Watts' clients include Goldman Sachs, NZX, Allied Farmers and PSIS. This year the team acted for PSIS a leading New Zealand non-bank deposit taker on the issue of NZ$100 million ($81 million) of AAA rated RMBS to institutional investors. This was significant for all parties concerned as it was the first time the client had raised funding from institutional markets. It was the second New Zealand RMBS issue since the global financial crisis and the structure had to take into account a range of issues.

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