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
- Lawyer Adina Thorn discusses her decision to launch a class action against Carter Holt Harvey over its Shadowclad product
- Westpac senior economist Satish Ranchhod says student inflows continue to be a big driver of growth
- Volpara chief executive Ralph Highnam on his company's $9.6m loss and fast-growing revenue
- NBR's Jenny Ruth on what analysts are saying about Ebos' $A154m HPS purchase
- NBR Radio: best of the week ended May 26, with Grant Walker