Westpac New Zealand is looking to borrow up to $500 million through a five year bond issue.
The bank says the offer is of senior, unsecured and unsubordinated bonds. Westpac says it's aiming to raise at least $100 million and as much as $500 million.
The offer opened last Friday and is due to close at 5pm on Thursday. The bonds will be priced at 11am on Friday at a margin of between 1% and 1.05% over the swap rate. With the five year swap rate at about 4.5% on Friday, that would give investors an interest rate around 5.5%.
The bonds, which won't be listed on the NZX debt market, will be issued on September 20 with the maturity date September 20, 2018. They'll be issued in minimum denominations of $10,000, and at multiples of $1,000 thereafter.
The fixed rate offer comes after Westpac raised $385 million through an issue of three-year floating rate notes in July. The initial interest rate on the floating rate notes was set at 3.38% and will be reset again in October at a margin of 75 basis points over the 90 day bank bill rate. Westpac also has a $265 million bond on issue, that's paying 7.045%, due to mature on November 28.
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