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 MyNBR Tags
Most listened to
- Hellaby’s oil & gas services business could deliver this year, says new managing director Alan Clarke
- Snakk Media chief executive Mark Ryan wonders how to "move the needle" on Snakk's share price
- Zero Emission Vehicle's Andrew Rushworth says his company may have been naïve
- FMA markets oversight director Garth Stanish tells NBR improvements in professional scepticism are particularly needed
- Head-to-head: Federated Farmers director Katie Milne and SAFE executive director Hans kriek debate dairy industry's treatment of bobby calves