Rates Round Up
BNZ bond offer raises $260 mill; Rates rise; Fortress Notes find more life, but outlook remains grim.
Monday, July 6th 2009, 8:21AM
BNZ perpetual bond raises $260 million
Bank of New Zealand's Innovative Tier 1 hybrid security raised $260 million after it was over-subscribed by around 73%.
The perpetual bond attracted investors with its 9.01% coupon per annum, and the high reset margin of 4.09% above the five-year swap rate in 2014.
The proceeds of the issue will be used by BNZ for general business.
There's speculation the security may be pulled after the first tranche, due to its reset margin significantly higher than other perpetual bonds on offer.
F&P leads rate rises on long terms, while ABN AMRO lifts short
Fisher & Paykel Finance boosted medium- to long-term rates, with two-year debentures raised 25 points to 7.50%. It increased the three, four and five year terms 50 basis points each to 8.50%.
ABN AMRO continued lifting its three- and six-month deposit rates, with the quarterly term rising 25 basis points for $20,000 amounts, 45 points for $50,000 deposits, and 65 points for $100,000 amounts. It increased half-yearly terms by 30 points, 50 points, and 65 points respectively.
ANZ and National Bank also tweaked their short term deposit rates.
The changes are to here, five and six month rates for amounts of $10,000 or more.
Both banks are offering 3.75% for three month money, while ANZ is offering 4.50% for six months compared to NBNZ's 3.50%.
NBNZ has increased its five-month rate to 4.50%.
Fortress Notes find more life, but outlook remains grim
Macquarie New Zealand Fortress Notes have clawed their way back to a net asset value at 10.6 cents per note, but the outlook is still grim with outstanding loans weighing on the prospect of investors receiving any interest repayments.
At April 30, the portfolio had nine defaulted obligators totalling US$31 million. Two had been sold at a loss of US$10.7 million, and a further position that hadn't defaulted was sold at a loss of US$3.1 million.
The company said no interest repayments would be made financing was fully repaid, and this wasn't expected until 2012.
| « Hubbard injects $40m into SCF | Lombard auditor questions value of debentures » |
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