By Gareth Vaughan
ANZ New Zealand has opened a seven-year retail bond offer, seeking up to NZ$250 million through an issue that will pay investors a minimum interest rate of 6.25%.
The bank says it's seeking to raise a minimum of NZ$100 million through the unsecured, unsubordinated bond issue, but is open to over subscriptions of up to another NZ$150 million. The offer opened yesterday and is due to close on Friday March 9.
The bonds will pay interest that will be the higher of a minimum of 6.25% or the aggregate of the seven-year swap rate, on the March 9 rate set date, plus the issue margin of 2.10%.
Investors' must stump up a minimum of NZ$10,000 with investments above that in multiples of NZ$1,000.
The bonds will be issued on March 13 and are due to mature on March 13, 2019. They won't be listed on the NZX debt market.
The offer comes with ANZ planning to repay an issue of subordinated bonds early on their call date of March 2 this year. These bonds, with a face value of NZ$250 million, weren't set to mature until March 2, 2017. They pay a coupon of 7.6% (five-year swap plus 76 basis points), which was due to be reset on March 15 this year. These bonds are listed on the NZX debt market.
ANZ's seven-year bond offer comes after one of the same duration from rival BNZ in December raised NZ$200 million at 6.1%.
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