BNZ says it is considering an offer for a new series of 5-year unsecured subordinated fixed rate notes for Kiwi retail investors and certain institutional investors

Bank of New Zealand (BNZ) says it is considering making an offer for the issue of a new series of 5 year unsecured unsubordinated fixed rate notes (Notes) to New Zealand retail investors and to certain institutional investors.

In a statement to the NZX, BNZ said it was expected that full details of the offer would be released in the near future, subject to market conditions.

BNZ said investors could register their preliminary interest in the offer by contacting BNZ, their financial intermediary or a Primary Market Participant.

The Notes are expected to be quoted on the NZX Debt Market.

Previous debt issues by BNZ already quoted on the NZX Debt Market include $575 million of bonds with a coupon rate of 4.426% and maturity in June 2020, $250 million of medium term notes with a coupon of 4.102% and maturity in June 2023 and $550 million of subordinated notes with a coupon of 5.314% and December 2025 maturity.

The BNZ also recently borrowed €750 million, or a bit under $1.2 billion, through a tightly priced seven-year covered bond issue.

The covered bond issue was priced at 15 basis points over the six-month Euribor, or Euro Interbank Offered Rate. It has a coupon of 0.500%, and yield of 0.522%.