AMP said that it had raised A$296 million in a bond issue offered in both New Zealand and Australian dollars. AMP had initially sought to raise A$300 million when it announced the offer to raise Tier 2 equity capital and repay debt. (Update 1 following interest rate announcement.) The total included A$202.7 million in Australian notes and NZ$115.5 million in New Zealand notes. The notes are unsecured, subordinated notes that rank behind other senior bonds, bank loans and deposits in the event of liquidation. The New Zealand notes were given an interest rate of 9.8025% following the announcement. This came from a swap rate of 5.0525% on April 9 plus a margin of 4.75%. AMP had been expected to have an interest rate of between 8.40% to 8.90% per annum. The notes are ten year securities with a five year call option in May 2014. See our corporate bond rush page here.
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