ANZ New Zealand, the country's biggest bank, is seeking to borrow up to $500 million through a bond issue.
The offer, to retail and institutional (professional) investors, is of unsecured, unsubordinated fixed rate bonds.
The five-year issue has an indicative margin of 0.95% to 1.05% per annum. The interest rate investors will be paid will be the margin plus the swap rate and will be set on February 9 after a bookbuild process.
With the five-year swap rate at 4.08% at the time of writing, that could see investors paid between 5.03% and 5.13%. The five-year swap rate is down from 4.91% at the start of 2023. As a comparison, ANZ NZ's advertised, or carded, five-year term deposit rate is currently 5%. (See all banks' advertised one to five year term deposit rates here).
ANZ NZ says the money borrowed will be used for "general business purposes."
The ANZ NZ offer opens on Tuesday, February 7, and is expected to close on Thursday, February 9 with the bonds issued on February 16.
The ANZ NZ bonds are expected to be quoted on the NZX Debt Market.
The bonds will not be guaranteed by ANZ NZ's parent, the Australia and New Zealand Banking Group Ltd, or anyone else.
The minimum application amount for investors is $10,000 and in multiples of $1,000 thereafter.
11 Comments
Any non-performing mortgages could be accommodated here?
ANZ's Non-Operating Holding Company......to establish a non-operating holding company and create distinct banking and non-banking groups within the organisation to assist ANZ to better deliver its strategy to strengthen and grow its core business further.
https://www.anz.com/shareholder/centre/about/anzs-non-operating-holding…
No, thats been created to hold assets that are not required to have a banking license. Banks are heavily regulated, this slows down and makes it hard to own a company such as MYOB inside a bank.... ANZ have said they are interested in owning finance related businesses. They would hold them in this non banking group structure. I suspect that they may well put a few tech startups in here etc. maybe a home for blockchain or crypto in here as well.
Its interesting, but would make a good home to a few projects that are poor cousins inside the bank due to there non revenue creating nature at current stage. These pets often get discarded at times of profit squeeze. Its definitely not a good bank, bad bank situation.
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