ANZ New Zealand has set the interest rate on a seven-year, NZ$250 million retail bond issue at 6.25%.
The rate is the higher of a 6.25% minimum, or the aggregate of the seven-year swap rate plus a margin of 2.10%, as of the rate setting at 2pm today.
The bank's Terms Sheet also confirms ANZ is raising the full NZ$250 million through the issue of unlisted, unsecured, unsubordinated medium term bonds. ANZ had said the offer was seeking NZ$100 million plus up to NZ$150 million in oversubscriptions. It comes with ANZ having called a separate NZ$250 million five-year subordinated bond on March 2, that technically wasn't set to mature until March 2, 2017. That bond was paying 7.6%, and the rate was due to be reset on March 15 this year at 76 basis points over the five-year swap rate.
The new bond, for which investors must stump up a minimum NZ$10,000 investment, will be issued next Tuesday and is due to mature on Wednesday March 13, 2019. Interest will be paid twice a year. ANZ says the money raised will be used for "general corporate purposes."
Interest.co.nz previously reported that the ANZ bond issue was attracting strong investor demand with ANZ restricting take up of the bond to its internal channels and networks such as ANZ Private Bank and Direct Broking.
It comes on the heels of a NZ$200 million, seven-year bond issue by BNZ in December that's paying 6.10% interest, and with a seven-year bond offer from Rabobank, seeking up to NZ$250 million that will pay a minimum of 6.10%, open. That offer is due to close on Wednedsay, March 14.