BNZ raises EUR750 mil in 7 yr eurobond
26th Feb 10, 5:27pm
by
BNZ has gone looking for money overseas and succeeded, raising EUR 750 million through a seven year eurobond. At current exchange rates, this is equivalent to more than NZ$1.5 billion. This issue is expected to cost the bank bank-bills-plus-150 bps, which it will probably feel satisfied with, given the seven year term.
A big, long issue like this will help it stretch out its average funding maturity in a way it could probably not do if it tried to find equivalent funds locally. Extending maturities will assist it in meeting the balance sheet obligations being imposed by the RBNZ as regulator.
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