Kiwibank offer formalised
Up to $100 million of Kiwibank unsecured subordinated capital notes will be offered to the New Zealand public.
Monday, May 5th 2014, 10:13AM 1 Comment
Kiwi Capital Funding Limited is issuing the notes and said proceeds would be used to invest in convertible subordinated bonds to be issued by Kiwibank, which will help Kiwibank meet its regulatory capital requirements under the Reserve Bank’s Basel III framework.
The notes have a maturity date of July 15, 2024 but may be called, if certain conditions are met, by KCFL from 2019 and earlier for tax or regulatory reasons.
The notes have a credit rating of BB+, or the highest speculative rating, from Standard & Poor’s, reflecting their subordination and loss absorption features.
Interest is scheduled to be paid semi-annually. The margin and interest rate for the first five years will be set following a bookbuild on May 14 and announced on or before the opening date.
The offer is expected to open on May 15 and close on June 3.
Deutsche Craigs and Forsyth Barr are the joint lead managers.
Applications for capital notes must be for a minimum of $5000 and in multiples of $1000 thereafter.
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