Anyone looked at these? Best value fixed interest investment on the NZX IMO. Currently trading at 86c, you get a 6.64% distribution. So running yield at current prices around 7.5%.

As a reminder, Quayside Holdings is the investment arm of the Bay of Plenty Regional Council, major assets being Port of Tauranga majority stake and other local real assets.
Ultimate risk of these notes is therefore equivalent to council so AA+.

However the kicker is that the BOP Regional Council are currently consulting to reduce their stake in Port of Tauranga. Should this happen, Quayside Holdings are required to redeem the notes at par. This juices up the projected return over the next couple of years to possibly mid teens as you will get the capital uplift to par possibly in short order.

A similar thing happened to FCGHA which was redeemed at par shortly after trading at 90c.

Risk free 15% p.a in the base case looks pretty good to me.