Westpac raises $750m in domestic bond sale

Photo / David White.

Westpac New Zealand said it had successfully raised $750 million from the domestic market through two bond issues.

Westpac NZ said it was likely to be the biggest domestic fund raising exercise to be undertaken by a non-government entity since the global financial crisis.

The bank's offer of $600 million in 3-year floating rate notes and $150 million in fixed rate bonds was filled on Tuesday night. The rate set for both will occur at 11 am today.

For the floating rate note, the interest rate will be 150 basis points over the equivalent bank bill rate. For the fixed rate offer, the rate will be 155 basis points over the equivalent swap rate, the bank's treasurer, Jim Reardon, told APNZ.

The offer was taken up by 27 institutions.

"The big thing for us was that it was very well received by the New Zealand market," he said.

"From our point of view, it highlights the good state of the New Zealand savings market," he said.

The bank said the funds would be used for the bank's general funding purposes.