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Kiwibank borrows NZ$309 mln from Australian savers
Kiwibank said it had borrowed NZ$309 million (A$250 million) from Australian savers through a 5 year bond issue offering 6.25%. This is the first time Kiwibank has raised funds on overseas wholesale markets and was foreshadowed in August when Kiwibank announced its results.
It said then that hot competition for funds locally from the big 4 Australian banks had forced it offshore. Kiwibank's advertising campaigns focus on its differences with the Australian banks and how it doesn't depend on Australia for its support or has to send profits to Australia.
Here is the full statement from Kiwibank below.
Kiwibank has successfully raised $A250 million ($NZ309 million) through a bond issue in Australia. This is the bank's first entry into the international wholesale bond market since the bank was launched in 2002.
The bank made presentations to investors last week, seeking to raise a minimum of $A200 million. The bond offer closed yesterday morning. The $A250 million raised is priced at a margin of 42 basis points over bank bill swap rates.
The bonds are guaranteed by the bank's parent, New Zealand Post Limited, and are provisionally guaranteed by the New Zealand Government under the Crown Wholesale Funding Guarantee Scheme. A final Guarantee Eligibility Certificate for the bonds is expected to be issued in the next few days. The bonds are expected to be rated as Aaa by Moody's and AA+ by Standard & Poor's.
HSBC was lead manager on the issue with co-managers RBS and UBS.
Kiwibank Treasurer Richard Schofield described the successful issue as "a significant and landmark transaction as it represents the bank's first public debt raising offshore".
4 Comments
"Hot competition"...they aint seen nothin...wait
"Hot competition"...they aint seen nothin...wait until the rates blow past 10% in a 70s re enactment. Then we will see some "competition" The few who didn't buy into long term deposits offered over the last year, are the only ones who will be able to 'fund' the debt binge. Don't expect to find and endless pool of silly ozzies happy to throw their loot away. No worries to Kiwibank however, as they are set to add fuel to the property fire when they multiply the money by ten and lend out over 2 billion to pork property prices. Up the bubble goes, ever closer to the sharp end of Mr Market's dagger.
Maybe Kiwibank are just positioning
Maybe Kiwibank are just positioning the Balalnce sheet ahead of when they secure the Govt's business from Westpac... >http://www.greens.org.nz/press-releases/time-change-government-banks
whishful thinking!
So is the Peoples Bank
So is the Peoples Bank now AUSTRALIAN PEOPLES bank as well,have we lost our edge or identidy,seems that way.
That has planted a cancer
That has planted a cancer in what is the most essential part of any hope of this nation ever gaining economic sovereignty. Left much longer and it will become terminal.