By Gareth Vaughan Kiwibank says its NZ$150 million preference share issue will pay an initial dividend rate of 8.15% per year. The state owned bank is issuing the perpetual callable non-cumulative preference shares, known as Kiwi Income Securities, to help fund its tier 1 capital. The dividend payments will include a cash payment and, to the extent available, imputation credits attached to the cash payment. The cash payment will be a proportion of the dividend rate. The initial dividend rate covers five years and was set at a margin of 2.90% annually over the five year swap rate. The issue, by Kiwibank subsidiary Kiwi Capital Securities, closed fully subscribed. The offer closed on Friday and the preference shares are expected to start trading on the NZX debt market this Thursday. ANZ National Bank was the offer's arranger with ANZ and Kiwibank joint lead managers. Co-managers were Craigs Investment Partners and Forsyth Barr.
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