Kiwibank has announced its issue of up to NZ$150 million of tier 1 perpetual callable non-cumulative preference shares in Kiwi Capital Securities has been fully subscribed and the minimum dividend rate had been set at 8.13% for the first 5 years. The offering opens on April 8 and closes on April 30. The final dividend rate will be set on May 3 at either 8.13%, or 290 basis points over the 5 year swap rate, whichever is the higher. Kiwibank Treasurer Richard Schofield said the offer attracted strong demand. “We are delighted with the support shown for the offer. The offer was oversubscribed in the bookbuild process and has been largely allocated on a firm basis to various financial intermediaries and institutions," he said. "Oversubscriptions of NZ$40 million have been accepted in the firm bookbuild process and a pool of up NZ$10 million has been established for clients of Kiwibank Limited," he said, adding that there would be no public pool and the issue would raise NZ$150 million assuming the pool for Kiwibank clients was filled. The proceeds from the issue will provide tier 1 capital for Kiwibank, avoiding the need for it to raise fresh capital from its shareholder, the government. The tier 1 shares do not carry voting rights. ANZ National Bank has been appointed as Arranger, while the Joint Lead Managers are ANZ National Bank and Kiwibank. The Co-Managers are Craigs Investment Partners Limited and Forsyth Barr Limited. Here's a link to the investment statement and here's a link to the full prospectus.
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