ANZ New Zealand, operator of the ANZ and National banks, has launched a five-year bond offer seeking at least NZ$200 million.
Although the ANZ offer of direct, unsecured, unsubordinated bonds is looking to raise at least NZ$200 million worth of NZ$1 bonds, it's open to unlimited oversubscriptions. Investors must stump up a minimum of NZ$10,000 and multiples of NZ$1,000 thereafter.
The bonds will pay a margin of 1.75% over the five-year swap rate. Based on today's five-year swap rate of 3.12%, that would give total interest of 4.87%. The bonds, which won't be listed on the NZX debt market, will pay interest twice a year in arrears in equal amounts.
The offer opened on Monday and will close next Tuesday, September 11, which is also the rate set date. The bonds will be issued on September 18 and mature on September 18, 2017.
The new ANZ bond offer comes after the bank called a NZ$350 million issue on their coupon reset date of July 23, which it had the option of resetting for another five years at a margin of 62 basis points over the five-year swap rate.
See ANZ's flyer here and its investment statement here.
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