SBS offers 10-year bond
SBS has launched a new 10-year capital bond.
Monday, October 2nd 2017, 1:44PM
The SBS Capital Bond is a 10-year subordinated redeemable share, will be available on an ongoing basis to New Zealand investors. It has an initial interest rate of 6.75% until october 31 which is fixed for the first five years, then a quarterly floating rate will apply.
SBS Bank chief risk officer Mark McLean said the product demonstrated another tangible benefit for SBS Bank’s customers.
“We’re keen for our customers to have the opportunity to participate in the SBS Capital Bond which is a much higher yielding product than anything we currently offer. As the SBS Capital Bond will be available through our retail channels we exclude any intermediaries, meaning any associated costs are also reduced, allowing SBS to offer the product at a great interest rate.”
He said it was part of the bank's growth and expansion strategy.
“Over the past 12 months we have experienced solid growth and the launch of the SBS Capital Bond will enable SBS to continue to raise capital now and into the future. It’s a real win-win for both SBS and investors.”
The subordinated redeemable share will qualify as Tier 2 Capital for SBS Bank under the Reserve Bank of New Zealand requirements.
It has a minimum investment of $10,000 with interest paid quarterly.
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