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Kiwibank to raise $100 million in perpetual share offer

Kiwibank is offering shares to the public to help fund its rapid growth and remove reliance on its parent NZ Post.The state-owned bank today registered its prospectus for an offer of up to $100 million perpetual preference shares, to be known as Kiwi Inc

Georgina Bond
Mon, 29 Mar 2010

Kiwibank is offering shares to the public to help fund its rapid growth and remove reliance on its parent NZ Post.

The state-owned bank today registered its prospectus for an offer of up to $100 million perpetual preference shares, to be known as Kiwi Income Securities, with provision for oversubscriptions of up to $50 million.

The offer is being made through its subsidiary Kiwi Capital Securities and the ultimate parent company is NZ Post.

Since its launch in 2002, Kiwibank has received annual injections of capital from NZ Post to help fund its growth.

Late last year it successfully raised NZ$309 million through a bond issue in Australia

The offer of perpetual preference shares opens next Thursday and is available to retail and institutional investors until the end of the month.

Money raised will be used to provide the bank ‘tier 1’ or core capital. The Reserve Bank requires this minimum level of funds to increase in proportion to the bank’s overall assets, to ensure a buffer against economic deterioration.

The Kiwi Income Securities will not give their holders any voting rights in Kiwibank and only limited voting rights in relation to Kiwi Capital Securities.

They have been assigned a credit rating of BBB by credit rating agency Standard & Poors.

Joint lead managers for the offer are ANZ National Bank and Kiwibank, and the co-managers are Craigs Investment Partners and Forsyth Barr.

Georgina Bond
Mon, 29 Mar 2010
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Kiwibank to raise $100 million in perpetual share offer
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