HSBC New Zealand has raised NZ$200 million through an issue of five-year floating rate notes to institutional, or professional, investors.
The notes were issued at a 125 basis points margin over the three month bank bill rate. HSBC says 18 investors participated in the issue, which was tipped by interest.co.nz earlier this week.
Strong demand was received with more than NZ$300 million bid, but the issue was capped at NZ$200 million HSBC said. The notes are likely to be attractive to institutional investors as a replacement for cash.
"HSBC will use the issue for general corporate purposes, including funding the local operation," said Trevor Pye, HSBC NZ's head of global markets.
"We are delighted that our first floating rate notes issue since 2008 has been oversubscribed.”
HSBC itself, ANZ and BNZ were joint lead managers of the deal.
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