ANZ New Zealand, owner of the ANZ and National banks, fund manager OnePath and UDC Finance, says it's planning a seven-year retail bond issue with a minimum interest rate.
ANZ says the announcement of the minimum rate and margin will be made on or around the opening of the offer, which it expects to be in late February. The seven-year swap rate is currently sitting at about 4.21%. The interest rate offered to investors will be a margin over this.
The bank is likely to seek to raise at least NZ$200 million after rival BNZ raised this amount in a seven-year bond issue in December that's paying investors 6.1% interest per annum.
ANZ's confirmation of its bond issue plans comes after it said on February 2 it was planning an offer of unsecured, unsubordinated bonds to the public.
The offer comes with ANZ planning to repay an issue of subordinated bonds early on their call date of March 2 this year. These bonds, with a face value of NZ$250 million, aren't set to mature until March 2, 2017. They're currently paying a coupon of 7.6% (five-year swap plus 76 basis points), which was due to be reset on March 15 this year. These bonds are listed on the NZX debt market.
See ANZ's bond issuer page here.
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