ASB has borrowed a total of NZ$525 million through a combined issue of five-year fixed and floating rate notes, with both tranches priced, or to be priced, at the low end of the bank's indicative price range.
ASB has raised NZ$250 million through the fixed tranche, which will pay investors 5.06% per annum, being a margin of 110 basis points over the five-year swap rate.
The floating rate tranche has raised NZ$275 million, with the initial interest rate on these notes to be priced at 110 basis points over the bank bill rate on Friday, August 2.
As interest.co.nz reported last week, ASB was looking to replace a NZ$475 million senior fixed rate bond issue that matured on Tuesday (July 16), and has been paying a coupon of 8.52%. The bank had been seeking to raise a minimum of NZ$100 million. Indicative pricing had been a margin of 110 to 115 basis points over the applicable bank bill rate (floating) and swap rate (fixed).
The fixed rate notes will be issued this Thursday and will mature on July 18, 2018. They'll pay interest semi-annually in arrears in two equal payments. The floating rate notes will be issued on Friday August 2, and will mature on August 2, 2018. Subscription amounts for investors were a minimum of NZ$10,000 and in multiples of NZ$1,000 thereafter.
The ASB issue comes after Westpac raised NZ$385 million through an issue of three-year floating rate notes last week. The interest rate on the Westpac notes was set at 75 basis points over the 90 day bank bill rate and will be priced on August 8.
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