Rabobank has successfully completed a new NZ$250 million wholesale issue of three year unsecured, unsubordinated floating rate medium term notes.
The issue date is May 2, with a maturity of three years from that date. The base rate will be the three-month Forward Rate Agreement (FRA) settlement rate with a margin of 0.88%. Based on the most recent available FRA figure of 2.63%, this would give a rate of 3.51% if the issue was being started today. Interest will be paid quarterly in arrears.
Rabobank launched and closed the issue on Wednesday, targeting a transaction of between NZ$150,000,000 and NZ$200,000,000. On the strength of the broad wholesale investor demand, which amounted to approximately NZ$300,000,000, the issue was upsized to NZ$250,000,000.
The issue had a minimum subscription amount of NZ$500,000, and multiples of NZ$100,000 after that.
The bank said the money is being used for "general corporate purposes".
The issue is expected to have a Standard & Poor's rating of AA-, a Moody's rating of Aa2 and a Fitch rating of AA.
“The issue was taken up by a broad range of local institutional investors including fund managers and prudential liquidity books. We are delighted with the ongoing support for Rabobank and continue to remain committed to the New Zealand domestic market.” says Rabobank’s Head of Long Term Funding Australia/New Zealand, Jai Anderson.
ANZ and BNZ were Joint Lead Managers for the issue.
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