Westpac New Zealand is borrowing $800 million through an issue of five-year bonds that will pay investors an interest rate of 3.696% per annum.
Announcing the issue earlier this week, Westpac said it was seeking to borrow up to $100 million plus unlimited oversubscriptions at its discretion.
For a comparison, the bonds' interest rate compares favourably to Westpac NZ's current 3.20% five-year term deposit rate.
The fixed-rate medium-term notes will pay an annual margin of 80 basis points over swap rate. They won't be listed on the NZX debt market. They'll be issued on February 16 and will mature on the same date in 2027.
Investors must take a minimum holding of $5,000, with the bonds having AA-, A1 and A+ credit ratings from S&P Global Ratings, Moody's and Fitch, respectively. Those credit ratings are aligned with Westpac NZ's own.
The unsecured, unsubordinated medium term notes are debt securities issued by Westpac NZ.
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