Downer EDI, which last week announced a NZ$150 million retail bond offer, said on Wednesday the minimum interest rate for its 'Works Bonds' will be 9.25%. The final rate will be announced around June 25. It will be based on a margin of 5% over the higher three year swap rate at 11am on Wednesday or the day on which the final rate is set. The bonds have a credit rating of BBB- from Fitch Ratings. If the rating falls or is withdrawn, the interest rate for the bonds will increase by 1.25%. The three year, fixed rate, unsubordinated and unsecured bonds are expected to start trading on the NZDX on July 1, with the first quarterly interest payment to be made on September 15. For more on New Zealand's recent corporate bond rush, see our retail bond offers page.
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