Kiwibank looking to raise $150 million
A related company of Kiwibank, to be called Kiwi Capital Securities is looking at selling $100m of the perpetual callable non-cumulative preference shares, to be known as Kiwi Income Securities, to the public with the option to accept over subscriptions of up to $50 million.
The shares will not entitle holders to any voting rights in Kiwibank, and have only limited voting rights in relation to Kiwi Capital Securities, whose ultimate parent is New Zealand Post.
The dividend rate applying to the shares will be fixed for the initial five years and then reset for subsequent five-yearly periods at the margin plus the swap rate applying at the time. Dividends will be paid quarterly basis and are non-cumulative.
The proceeds from the issue of the shares will provide tier 1 capital to Kiwibank.
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