ANZ Bank New Zealand says the punters holding NZ$835 million worth of its bonds expecting to get repaid on their April call date are out of luck. Instead the bank will reset the interest rate investors are receiving at a much lower rate.

In a brief statement today ANZ NZ Treasurer Paul Daley said: "We wish to advise that ANZ Bank New Zealand Limited does not intend to exercise its right to repay its NZ$835 million perpetual callable subordinated bonds on 18 April 2013."

The bonds were issued in 2008 and are currently paying interest of 9.66% per annum. With ANZ not calling them, the interest rate will be reset at a margin of 200 basis points over the five-year swap rate for another five-years. As of today the five-year swap rate was 3.49%, which would see the interest rate on the ANZ bonds set at about 5.5% until 2018.

Listed on the NZX debt market, the bonds are currently trading at NZ$99 per NZ$100 of face value.