BNZ is seeking to raise NZ$50 million in an offer of five year unsubordinated fixed rate retail bonds, with the ability to accept unlimited over-subscriptions. BNZ has a retail government guarantee. (Updated to include that this bond is covered by the retail guarantee that expires in October 2010, rather than the wholesale guarantee that would not have expired until the bond matured.) The rate offered will be the higher of 6.15% or the sum of the 5-year swap rate plus 1.75%. It will close on Friday, March 27, with a settlement date of March 31. The offer is being self-led by the BNZ, which has a AA (stable) credit rating from Standard and Poor's. The 5 year swap rate is currently around 4.30%. The minimum deposit is NZ$5,000. The rate is due to be set on March 27. See our corporate bond rush page here. BNZ is currently offering 6% in its regular 5 year term deposits at the bank. See all the long term deposit rates here. This bond is not covered by the wholesale guarantee, but is covered under the retail guarantee that is set to expire in October next year. Given this bond matures in March 2014, that potentially means 4 years without a government guarantee.
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