Kiwibank considers $150m bond offer after S&P cuts rating

BUSINESSDESK: State-owned lender Kiwibank is looking at raising up to $150 million from a subordinated bond offer, after its credit rating was cut a notch by Standard & Poor's.

The Wellington-based bank is considering a public offer of unsecured, subordinated bonds, with the formal documents likely to be released next week, it says in a statement.

The debt sale comes days after S&P cut the credit ratings of Kiwibank and its parent, New Zealand Post, to A+ from AA-, citing the group's growing reliance on its banking operations and expectations of dwindling postal revenues.

Craigs Investment Partners has been appointed arranger, and is joint lead manager with Kiwibank. ANZ New Zealand is co-manager with Forsyth Barr.

Kiwibank had some $1.81 billion in issued debt securities as at June 30, according to its annual report.


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7167 0.0000 0.00%
AUD 0.9558 0.0000 0.00%
EUR 0.6432 0.0000 0.00%
GBP 0.5398 0.0000 0.00%
HKD 5.5636 0.0000 0.00%
JPY 73.4440 0.0000 0.00%

Commods

Commodity Price Change Time
Gold Index 1339.0 17.480 2016-07-01T00:
Oil Brent 50.9 1.180 2016-07-01T00:
Oil Nymex 49.0 0.750 2016-07-01T00:
Silver Index 19.6 0.967 2016-07-01T00:

Indices

Symbol Open High Last %
NZX 50 6897.5 6932.1 6897.5 0.42%
NASDAQ 4837.2 4880.2 4842.7 0.41%
DAX 9742.8 9806.5 9680.1 0.99%
DJI 17924.2 18002.4 17930.0 0.11%
FTSE 6504.3 6587.4 6504.3 1.13%
HKSE 20736.8 20828.0 20436.1 1.75%
NI225 15698.0 15765.0 15575.9 0.68%
ASX 5233.4 5278.9 5233.4 0.25%