BNZ sells €1 billion of covered bonds

BNZ has become the first New Zealand bank to sell covered bonds in Europe denominated in euros, and has raised €1 billion ($1.75 billion).

Covered bonds are controversial because they have recourse to a pool of assets that secures or "covers" the bonds.

The seven-year bonds were priced at 0.61 per cent per annum over the euro mid swap rate.