KEY POINTS:
ANZ National has raised NZ$835 million from its issue of perpetual callable bonds, more than double its initial forecast.
The success of the issue brings the total raised by ANZ National's perpetual bond issue and a perpetual share issue by BNZ last month to NZ$1.285 billion.
This reflects strong "flight to quality" demand by investors worried about recent finance company collapses and financial market turmoil, and seeking an A plus rated bond with an interest rate of close to 10 per cent.
ANZ National said the interest rate for the first five year period of the perpetual callable bonds was set at 9.66 per cent, given a pre-set margin of 200 basis points over the five year swap rate yesterday of 7.66 per cent.
The perpetual tier one share issue by BNZ Income Securities raised NZ$450 million, above initial expectations of NZ$350 million, and set its interest rate for the first five years at 9.89 per cent, given a pre-set margin of 220 basis points above the five year swap rate of 7.69 per cent.
ANZ National Chief Executive Graham Hodges said the bank was pleased with the response, given it had initially targeted NZ$400 million from the issue.
ANZ National's Managing Director for Institutional, Corporate and Commercial Banking, Nigel Williams said 75 per cent of the issue by value came from retail investors. "It's been extraordinarily successful from a retail point of view," Williams said.
- INTEREST.CO.NZ
