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.

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

Comment & Question

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7875 0.0049 0.63%
AUD 0.9121 0.0018 0.20%
EUR 0.6276 0.0034 0.54%
GBP 0.5019 0.0026 0.52%
HKD 6.1076 0.0394 0.65%
JPY 92.8950 0.3960 0.43%

Commods

Commodity Price Change Time
Gold Index 1193.9 -13.950 2014-11-19T00:
Oil Brent 78.8 0.360 2014-11-19T00:
Oil Nymex 74.5 -0.010 2014-11-19T00:
Silver Index 16.3 0.120 2014-11-19T00:

Indices

Symbol Open High Last %
NZX 50 5522.1 5538.0 5522.1 0.09%
NASDAQ 4655.2 4703.0 4675.7 0.56%
DAX 9460.4 9487.7 9472.8 0.12%
DJI 17685.5 17712.3 17647.8 0.22%
FTSE 6696.6 6696.8 6696.6 -0.26%
HKSE 23401.0 23461.0 23373.3 -0.10%
NI225 17407.7 17407.7 17288.8 0.07%