By Gareth Vaughan
Rural lender Rabobank has raised NZ$175 million through the sale of retailable five-year bonds with the money raised to be used for "general corporate purposes."
The unlisted bonds, set to be issued tomorrow - Tuesday - mature on March 1, 2016. They were issued at a margin of 1.07% per annum over the swap rate giving a yield of 5.48%.
The offer is being managed by ANZ with investors having to stump up a minimum of NZ$10,000 with multiples of NZ$1,000 thereafter. Interest will be paid twice yearly in arrears in two equal payments.
RaboDirect, meanwhile, is currently offering 6.45% on five-year term deposits for a minimum deposit of NZ$1,000. See all term deposit rates for one to five years here.
Rabobank's bond issue follows the first domestic issue by a bank in 2011 by ANZ earlier in February, which raised NZ$150 million in five year bonds and NZ$100 million in seven year bonds. The ANZ bonds were issued solely to institutional investors.
ANZ's five year bonds were priced at 165 basis points over the swap rate meaning they'll pay out interest at 6.315% and the seven year bonds were priced at 180 basis points over swap meaning they'll pay investors' 6.85%.
* This article was first published in our email for paid subscribers earlier today. See here for more details and to subscribe.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.