BNZ is borrowing $600 million through a five-and-a-half year bond issue that will pay investors an annual interest rate of 5.536%.
The bank will issue the unsecured, unsubordinated fixed rate notes on November 25. To be listed on the NZX Debt Market, they mature on May 25, 2028.
The 5.536% interest rate comes after the margin was set at 1.10% over the reference swap rate. BNZ says the money borrowed will be used for "general business purposes."
By way of a comparison, BNZ's advertised five-year term deposit rate is currently 4.70%.
Announcing the bond issue on November 15, BNZ said it was seeking to borrow up to $100 million, plus unlimited oversubscriptions at its own discretion.
Earlier this month rival ASB borrowed $650 million through a four-year unsecured, unsubordinated, fixed rate medium term note offer that's paying investors 5.928% per annum.
Further details of the BNZ issue are available in the terms sheet here.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.