Biggest ever non-Govt bond offer reaches the end
Wednesday, September 20th 2017, 8:23AM
Rabobank has decided to redeem its bonds (NZX:RBOHA) which had a resettable rate, and where wildly popular when they were issued 10 years ago.
The bank sold $900 million worth of bonds just as the finance company sector was collapsing during the GFC. It was, and remains, New Zealand’s largest ever non-government debt issue.
The bonds were a perpetual security with resettable interest rates. The original rate was 9.482%, set at a margin of 76 basis points over the one-year swap rate. But as the swap rate fell the interest rate reduced to just over 2% at one stage.
Rabobank will exercise its right to fully redeem the bonds with the final day of trading being September 27.
« Smartshares reduces ETF fees | Kiwi Wealth latest to get responsible tick » |
Special Offers
Comments from our readers
No comments yet
Sign In to add your comment
Printable version | Email to a friend |