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ASB to pay investors 3.31% per annum for $450 million five-year bond issue

Bonds
ASB to pay investors 3.31% per annum for $450 million five-year bond issue

ASB will pay investors 3.31% per annum for $450 million it's borrowing via a five-year bond issue.

The interest rate on the fixed-rate bonds is based on a 1.02% margin over swap. The indicative margin was 1.00% to 1.05%.

The bank's currently offering a 4% five year term deposit rate for savers with a minimum deposit of at least $10,000.

ASB had been seeking to raise a minimum of $100 million, with the option of accepting unlimited over subscriptions. The unsecured, unsubordinated notes will be issued on September 7 and are expected to be quoted on the NZX Debt Market.

ASB's terms sheet is here.

 

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1 Comments

What about fractional reserve, money multiplier,money-out-of-thin-air theories???

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