State-owned Kiwibank will offer up to $150 million unsecured, subordinated bonds to the public to help fund its growth plans.
The debt sale will open on November 14 and close on December 5, formal offer documents reveal.
The debt sale offer opens just over a week after ratings agency Standard & Poor’s 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.
The subordinated bonds have a maturity date of December 15, 2022, but may be called by Kiwibank from December 15, 2017, or earlier.
They will pay interest semi-annually for the first five years until December 15, 2017, at a rate to be set on November 13, following a bookbuild.
Kiwibank says it intends to treat the subordinated bonds as "tier 2" capital instruments under the Reserve Bank’s Basel III framework. The bonds are expected to have a credit rating of BB+ from Standard & Poor’s.
Investment statements are available from the joint lead managers or co-managers to the offer: Craigs Investment Partners, Kiwibank, ANZ, 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
- Regional economic development, job creation and immigration key priorities for the Coalition
- Tuanz would be ‘heavily concerned’ if Spark or Vodafone made a bid for Vocus: Young
- Lewis Road sells 25% stake to Swedish-backed institutional farmland fund
- Slum developer ignores court and jams illegal homes on to residential sites
- More red ink at Fuji Xerox NZ
Most listened to
- Lewis Road ceo Peter Cullinane says Southern Pastures was the best fit of potential investors they spoke to
- Telecommunications Users Association's Craig Young says Vocus are getting ready for a familiar experience, getting sold
- Labour leader Jacinda Ardern and NZ First leader Winston Peters discuss their foreign ownership plans
- Rodney Hide, unlike the public, is unsurprised at the insanity of politics
- Jacqueline Rowarth on how food production advances have influenced our consumption habits
- NBR Radio: The best interviews, with Grant Walker — updated daily