NAB calls in $449.7m of high-yielding BNZ perpetual notes

National Australia Bank is calling in $449.7 million of BNZ Income Securities perpetual shares which pay a coupon of 9.89 percent, the highest of any hybrid security traded on the NZX Debt Market.

The perpetual non-cumulative shares were issued on March 28, 2008, when prevailing interest rates were much higher. For example, New Zealand two-year swaps have tumbled more than 5 percentage points since then.

NAB is exercising its right to call the securities on their fifth anniversary and has asked NZX to halt trading in the shares between March 14 and the transfer date of March 28. They last traded at $1.01 per $1 face value, according to NZX.

The call leaves ANZ Bank New Zealand as the issuer of the hybrid with the highest coupon – 9.66 percent – also sold in 2008. Their first call date is April 18. ANZ spokesman Peter Barnao said last month that no decisions had been made yet on the perpetual bonds.

ANZ last year called and repaid $350 million of subordinated bonds issued in 2007 with a coupon of 8.23 percent. BNZ also called $350 million of subordinated bonds sold in 2007 with a coupon of 8.42 percent.

(BusinessDesk)

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 0.7837 -0.0018 -0.23%
AUD 0.9220 0.0001 0.01%
EUR 0.6302 -0.0002 -0.03%
GBP 0.4992 -0.0003 -0.06%
HKD 6.0756 -0.0135 -0.22%
JPY 92.6060 0.0260 0.03%

Commods

Commodity Price Change Time
Gold Index 1196.6 -2.970 2014-11-26T00:
Oil Brent 79.4 -0.640 2014-11-26T00:
Oil Nymex 73.7 -0.340 2014-11-26T00:
Silver Index 16.6 0.000 2014-11-26T00:

Indices

Symbol Open High Last %
NZX 50 5455.4 5474.7 5455.4 -0.57%
NASDAQ 4760.2 4788.0 4758.3 0.61%
DAX 9990.7 9990.7 9974.9 -0.25%
DJI 17812.2 17833.8 17814.9 0.07%
FTSE 6723.4 6723.9 6723.4 -0.60%
HKSE 23982.3 24117.2 24004.3 -0.07%
NI225 17340.2 17471.9 17248.5 1.23%