CompareBonds commentary18 August 2026
Defensive retail credit stays in demand
Supermarket issuers are viewed as defensive credit exposure because grocery demand is relatively stable through economic cycles.
About this bond
Woolworths Group is Australia's largest supermarket operator, with a defensive, cash-generative earnings base built on everyday grocery spending across Australia and New Zealand.
The bond (ISIN AU3CB0315976, ticker WOWAU) is a senior unsecured obligation carrying a 5.910% coupon and maturing on 29 November 2034. Indicative secondary-market yields have traded in a range of roughly 5.90% to 6.07%.
Senior unsecured ranking means the notes sit ahead of subordinated debt and equity, but behind any secured creditors, if the issuer were wound up.
As an AUD-denominated bond, New Zealand investors carry NZD/AUD currency risk on both coupon payments and principal repayment.
Currency
Australian dollars (AUD)
Identifiers
WOWAU / AU3CB0315976
Coupon
5.910% p.a., fixed
Indicative YTM
~5.90% – 6.07% p.a.
Maturity
29 November 2034
Ranking
Senior unsecured
Where the money goes
General corporate purposes
Funding for ongoing group operations and working capital across the Woolworths retail network.
Store network investment
Renewal and expansion of supermarket formats across Australia and New Zealand.
Supply chain automation
Investment in automated distribution centres and fulfilment capacity for online grocery.
Refinancing
Terming out shorter-dated bank and note facilities with long-dated fixed-rate funding.
Bond return calculator
Estimate coupon payments and after-tax returns at 5.91% p.a.
Per coupon payment
$222
Gross interest per year
$887
Total gross over 5 yr
$4,433
RWT deducted (33%)
- $1,463
Total after tax
$2,970
If coupons reinvested
$5,113
Indicative only. Figures assume the bond is held to maturity and the coupon rate does not change.
General market commentary
The following is illustrative general commentary about the New Zealand fixed-income market prepared by CompareBonds.co.nz. It is not news reporting, is not attributed to any news organisation or issuer, and is not a forecast. Past or current market conditions are not a guide to future returns.
CompareBonds commentary9 August 2026
Long AUD corporate paper trades near 6%
Yields on high-quality Australian corporate bonds maturing in the mid-2030s have hovered close to the 6% mark.
CompareBonds commentary1 August 2026
Trans-Tasman investors look across the ditch for yield
NZ investors adding AUD corporate bonds should weigh the additional exchange-rate variable against the extra yield on offer.
Key risks
- Currency risk: coupons and principal are paid in Australian dollars. NZD/AUD movements can reduce your return in NZ dollar terms.
- Credit risk: repayment depends on Woolworths Group meeting its obligations under the notes.
- Interest rate risk: with maturity in 2034, the market value of the bond can fall meaningfully if market rates rise.
- Liquidity risk: the notes trade over the counter and may be difficult to sell at a given price or size.
- Availability risk: this is not a New Zealand retail offer. Access is via a broker, subject to minimum parcel sizes and eligibility.
- Not a bank deposit: corporate bonds are not covered by the New Zealand Depositor Compensation Scheme.
Frequently asked questions
What is the difference between the coupon and the yield?
The coupon is the fixed 5.910% p.a. paid by the issuer on face value. The yield to maturity (around 5.90% – 6.07%) reflects the price you pay in the market and moves with market conditions.
When does the bond mature?
29 November 2034, when the face value is scheduled to be repaid in Australian dollars.
Do I take currency risk as a New Zealander?
Yes. The bond pays in AUD, so your NZ dollar return also depends on the NZD/AUD exchange rate unless the exposure is hedged.
Is this covered by the Depositor Compensation Scheme?
No. The DCS covers deposits with licensed New Zealand deposit takers. Corporate bonds are not covered.
How do I get more information?
Register your interest using the form on this page and a specialist from a licensed broker will send you current pricing and the offering documents.
Woolworths Group and all other company names, brands and logos referred to on this page are the property of their respective owners and are used for identification and comparison purposes only. CompareBonds.co.nz is an independent website and is not affiliated with, endorsed by, sponsored by or acting as an agent for any issuer named. Product details, indicative rates, offer dates and market commentary on this page are illustrative summaries only, are not sourced from or approved by the issuer, and must not be relied on when making an investment decision.