KEY POINTS:
State-owned retail bank Kiwibank has priced a $75 million subordinated debt issue to fund further expansion and growth. The bonds will pay a yield of 7.72 per cent, or 25 basis points over the five-year swap rate. The lower tier II offer consists of 10-year notes that won't be callable for five years.
The transaction, the first bond issue for the bank, was well oversubscribed at the clearing margin. A market source said the notes were placed in New Zealand with institutional investors, retail brokers and second-tier institutions.
The notes will not be guaranteed by Kiwibank's owner, New Zealand Post, and are rated A-plus by Standard and Poor's on a stand-alone basis.
