Rates Round Up
Mixed week for investment rates; Goodman Property Trust looks to offer bond; Transpower joins flood of power companies in the bond market.
Sunday, November 8th 2009, 9:04AM
Mixed week in deposit rate competition amid rising rates across the ditch
It was a mixed week for deposit rates with changes across the board, while interest rates climb in Australia after that country's central bank continued to tighten monetary policy.
ANZ and National Bank eased from last week's aggressive hikes, cutting 12-month terms by 20 basis points, 18-months by 15 points, and two- and three-year terms by 25 points. BNZ lifted its 18-month rate 15 points and its five-year rate 15 points. Kiwibank cut its 12-month offer 35 basis points.
HSBC increased its three-, four- and five-year term deposits by 40, 10 and 15 points respectively, while Rabobank cut its 12-month, and two- and three-year rates 25 points, its four-year rate 20 points and its five-year rate 10 points. The PSIS upped its 18-month term deposit rate 25 points.
Credit Union Northern increased its 12-month and two-year rates 25 basis points, while United Credit Union increased its six-month terms by 85 points and its 12-month terms by 50 points.
PGG Wrightson Finance increased its terms on offer 5 basis points for three-month terms, 25 basis points for six-month terms, 15 points for nine-months and 50 points for 12-month deposits.
Goodman Property Trust looks at publicly-listed bond
Goodman Property Trust is looking to tap investors for as much as $150 million a bond issue to repay its bank borrowings and diversify its sources of debt funding.
The five-year $100 million bond has been rated an investment grade BBB+ by S&P will be able to take up to $50 million in oversubscriptions, and is expected to open on Nov. 16, when the minimum interest rate will be announced. The final rate will be made public on Dec. 14.
Goodman has applied to have the security listed, but the NZX has yet to approve this.
Transpower joins flood of power companies jumping into the bond market
State-owned grid operator Transpower is contemplating a domestic bond issue of about $200 million early next year as it prepares for a heavy 12 months of investment spending.
If it does so, it will join the growing trend among power companies to tap investors for funds through the bond market.
Last month, TrustPower announced it was considering a similar move, while Contact Energy bonds are already available, and Meridian Energy has a retail security in the pipeline for next year too.
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