Fonterra has cut the interest rate on its NZDX-listed perpetual capital notes to 4.83% from 8.74% to reflect the lower official cash rate.
The dairy co-operative has $35.1 million worth of perpetual capital notes on issue.
The decrease is based on an almost 4.00% fall in the one year government stock rate since July last year, Fonterra said today, adding that the margin portion of the interest rate remains unchanged at 1.80%.
“This decrease is due to the RBNZ's cuts in OCR as a reaction to the global recession, cuts which have created a lower interest rate environment.”
The next quarterly interest payment on the notes is due to be made on 12 October 2009 to those holders registered on 2 October 2009.
Under the terms on which the perpetual capital notes were issued, the
interest rate is reset on 10 July each year.
This article is tagged with the following keywords. Find out more about MyNBR Tags
Most listened to
- Business Week in Review with Grant Walker & Andrew Patterson
- The kiwi dollar has spiked against the pound in one of the biggest one day currency moves in history. NBR’s Jason Walls breaks down the dollar’s movement
- What Brexit now means for NZ, with NZIER John Ballingall
- Dr Oliver Hartwich says everyone should stay calm and carry on
- Matthew Hooton on making a moral case for social capital