Westpac New Zealand's borrowing $1 billion via a five-year bond issue that will pay interest of 3.868% per annum.
The fixed-rate, medium term notes offer had sought to raise up to $100 million, with unlimited over-subscriptions at the bank's discretion possible. The margin was set at 0.83%, the low end of the 0.83% to 0.85% per annum indicative margin.
The interest rate the bonds will pay is slightly lower than Westpac NZ's current advertised five-year term deposit rate of 3.90%.
The minimum application for the unlisted bonds, which will pay interest twice yearly, was $5000. They're to be issued on November 19, and mature on November 19, 2030.
The bonds are senior, unsecured and unsubordinated obligations of Westpac NZ.
The bank says the $1 billion borrowed will be used for its general corporate purposes, including making loans to customers.
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