By Gareth Vaughan
ASB has raised NZ$400 million through the issue of a five-year unsecured bond after accepting NZ$300 million worth of oversubscriptions.
The bond was priced at 4.476%, being 130 basis points over the five-year swap rate at the time the rate was set. ASB had sought a minimum of NZ$100 million with the offer open to unlimited oversubscriptions.
The bonds were issued yesterday and are due to mature on December 20, 2017.
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1 Comments
Assuming these were not covered bonds from foreign lands; and were largely targetted domestically, then all good with me. If the commercial banks source more of their needs locally, that will help ease the exchange rate/ current account vicious cycle we've been in. We'd only need the Treasury DMO to fall into line, and the exchange rate pressures from capital flows would quickly diminish.
If there were not enough funds locally, then the RBNZ could actually get creative, and loosen the OCR, or come up with another tool or two, to ensure there were.
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