ANZ NZ plans five and seven year bond issues seeking at least NZ$100 mln each but open to unlimited oversubscriptions

ANZ Bank New Zealand says it’s planning issues of unsecured, fixed rate, unsubordinated bonds for five and seven year terms, and seeking to borrow at least $200 million.

The bank says the offers will be to both institutional and New Zealand retail investors and comprise:  

• Up to NZ$100 million of a series of fixed rate bonds with a term of five years. And; 

• Up to NZ$100 million of a series of fixed rate bonds with a term of seven years.

In both issues ANZ says it has the ability to accept unlimited oversubscriptions at the bank’s own discretion.  

“It is expected that full details of the offers will be released on 23 August 2016 [today], when the offers are expected to open. The Bonds are expected to be quoted on the NZX Debt Market,” ANZ says.

The bond issues come after ANZ NZ CEO David Hisco recently spoke out about the overheated Auckland housing market, and said it was a challenge for the bank to source overseas funding to meet strong domestic lending demand. As reported by last December, a new rule implemented by the Australian Prudential Regulation Authority means ANZ NZ must repay its Australian parent NZ$8 billion over five years.

Kiwi Property Group offer

Meanwhile, Kiwi Property Group Ltd wants to borrow up to NZ$125 million through an issue of seven-year, fixed rate, senior secured bonds. The offer, to NZ institutional and retail investors, seeks $75 million plus up to $50 million in oversubscriptions.

“The offer will open with an indicative margin range of 1.65% to 1.85%, subject to a minimum interest rate of 4.00% per annum. An announcement of the actual interest rate on the bonds will be made following the bookbuild process, expected to be on 31 August 2016,” Kiwi Property Group says.