Westpac has raised NZ$385 million through an issue of three-year floating rate notes, with the initial interest rate on the notes to be set at the low end of an indicative range.
Westpac says the margin on the notes, which are senior, unsecured and unsubordinated debt of the bank, will be set at 75 basis points over the 90 day bank bill rate this Thursday. The 90 day bank bill rate was at 2.63% today.
The initial interest rate paid to investors will run from the issue date on August 8 until an interest rate payment date in November. Interest will be paid quarterly in arrears.
The offer was closed at 3pm this afternoon, ahead of the "no later than" 5pm Wednesday deadline indicated by Westpac when it opened the offer on Monday morning.
As reported by interest.co.nz yesterday, Westpac had been seeking to borrow a minimum of NZ$200 million and a maximum of NZ$500 million through the offer. It had said the notes would be issued at a margin of between 75 and 80 basis points over the 90 day bank bill rate.
The notes are set to mature on August 8, 2016.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.