Rates Round Up
Goodman Property Trust to raise $150 million; Transpower dishes up detail of bond offer; CBS surprised at deposit war intensity; Latest rate changes and more.
Tuesday, November 24th 2009, 6:03AM
by Paul McBeth
Goodman Property Trust to raise $150 mln through five-year bond
Goodman Property Trust will meet its target of $150 million through a five-year bond issue paying a yield of 7.7%. The trust's manager, Goodman (NZ) said there will not be a public pool due to strong demand from institutional investors and NZX participants on its $100 million offer and $50 million in oversubscriptions.
The bonds have been given an investment-grade BBB+ rating by Standard & Poor's.
Transpower dishes details on bond offer
Grid operator Transpower has announced a few more details on its proposed senior retail bond offer.
The State-owned company hopes to raise money so it can pay down debt and lengthen the maturity of its debt facilities through a five-year tranche, and subject to demand a seven-year tranche.
The offer is expected to open this month and will be lead by ANZ and Craigs Investment Partners.
CBS Canterbury CEO surprised at deposit war's strength
CBS Canterbury chief executive Bryan Inch is surprised at the ongoing strength in the deposit war competition, saying he thought the extension to the central bank's liquidity requirements for the banks would have given them reason to pause.
Westpac looks to boost its longer-term deposits as F&P Finance makes a move
Westpac marches ahead in longer-term retail deposits this week, boosting its two-, three-, four-, and five-year deposits 25 basis points this week. The bank also upped its 18-month rate for $10,000 deposits by 80 points and increased its one-month 10,000 deposits by 25 points, along with all two-month terms by 25 points.
Fisher & Paykel Finance powered its rates across the board on Wednesday, boosting its three- and six month rates by 50 points, its nine- and 12-month terms 75 points and 18-month deposits by 100 points. It increased its two-, three-, four- and five-year terms by 50 basis points.
ANZ-owned UDC joined the hump day review, increasing its two- and three-year terms by 25 points and its five-year terms by 15 basis points.
TSB upped its six-, nine- and 12-month deposits between $5,000 and $10,000 by 25 points, and cut its six-month $10,000 term by 25 points. It raised $10,000 deposits for nine-month terms by 75 points, 12-month terms went up 50 points, and three-year and five-year terms rose 25 points. The bank introduced four-year specials of 5.25% and 6.25% for its deposits between $5,000 and $10,000 and $10,000 plus respectively.
Bank of New Zealand raised its 18-month terms by 5 points and FE Investments increased its 12-month terms by 20 points, its 18-month terms by 50 points, and its two- and three-year terms by 60 points.
Moody's methodology change might downgrade bank hybrids
Rating agency Moody's Investor Services is reviewing the way it assesses hybrid securities after governments around the world have introduced measures to stabilise the banking system, and has put an array of bank securities under threat of being downgraded.
Moody's has indicated Tier 1 ratings could be downgraded an average of three notches, while Upper Tier 2 ratings face one or two notches, though there will be no impact on Lower Tier 2 ratings.
Bank of New Zealand and Wetspac listed the securities affected by the review. ANZ National said its Convertible Preference Shares were not rated by Moody's and would not be affected, and its deposit, senior debt and Lower Tier 2 subordinated debt would not be impacted by the changes.
Paul is a staff writer for Good Returns based in Wellington.
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