BNZ tier 1 perpetual bond issue may be priced at 9%

BNZ looks like it will price its Tier 1 perpetual non cumulative bond issue at up to 9%. Reuters reports a market source as saying the issue to raise up to NZ$150 million will be priced at 400 to 425 basis points above the 5 year swap rate, which is currently around 4.75%. This would mean the tier 1 issue would be priced around 9%. BNZ, Forsyth Barr and Goldman Sachs JBWere are managing the offer, which is open to retail and institutional investors in New Zealand. The bids for the offer are due by next Monday and the rate will be set next Tuesday May 26. The rate is due to be reset in June 2014.