Rates round-up: August 20
Government bond bid missed; Roest pleads guilty to SFO charges; Z Energy bonds raise $135m.
Monday, August 20th 2012, 6:37AM
Roest pleads guilty to SFO charges
Former Bridgecorp chief financial controller Cornelis Robert (Rob) Roest (56) has had his jail time increased after being convicted of charges brought against him by the Serious Fraud Office (SFO).
In the Auckland District Court last week Roest pleaded guilty in to one Crimes Act charge and two Companies Act charges and also entered guilty pleas to charges brought by Inland Revenue relating to misapplication of PAYE deductions.
For this he has received an uplift of three months on his existing jail sentence of six and a half years, handed down in May after he was convicted oncharges brought by the Financial Markets Authority (FMA) under the Securities Act, Crimes Act, and Companies Act.
Roest is currently appealing both his FMA conviction and sentence.
The SFO charges related to his role in the fraudulent acquisition and financing of a luxury launch, the ‘Medici', which was purchased using Bridgecorp funds totalling $3.5 million.
Z Energy bonds raise $135m
Z Energy has raised $135 million in its latest retail bond issue, $15 million shy of its maximum target of $150 million. The total includes $35 million of oversubscriptions.
The offer has an interest rate of 6.50% and matures inNovember 2019. The bonds are senior, secured, fixed rate obligations of Z Energy, and will rank equally with each other and with existing bonds issued by Z Energy.
This issue represents the Z Energy group's third successful retail issue in as many years since the New Zealand Superannuation Fund and Infratil acquired Shell's New Zealand downstream oil and fuel operations in April 2010.
The proceeds of the issue will primarily be used to pay down bank debt.
Government bond bids missed
The New Zealand Debt Management Office has promised to honour $26 million of bids for 2023 government bondsmistakenly left out of last week's auction.
"As a result of an operational issue, some bids in today's tender for the 15 April 2023 bond were excluded in error. These bids were submitted in accordance with NZDMO's Operating Rules and Guidelines," DMO Treasurer Brendan Doyle and Acting Head of Portfolio Management Andrew Hagan said.
"Because the bids were submitted in accordance with the Operating Rules and Guidelines, NZDMO will honour those that would have been successful based on the tender result as announced," they said.
"As a result, an additional NZ$26 million of bonds have been issued on a private placement basis. The bonds were issued at yields at or below the maximum successful yield of the tender."
The auction saw $100 million of 2015 bonds receive $390 million of bids, and $150 million of 2023 bonds received NZ$392 million of bids.
Yields were up for both tranches, with the 2015 bonds yielding 2.74%, up from 2.67% when they were issued two weeks earlier, while the average yield for the 2023 bonds was 3.86%, up from 3.72% the previous week.
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