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SYDNEY, May 20 (Reuters) - Bank of New Zealand plans to
sell up to NZ$150 million ($90.74 million) of Tier 1 notes at a
margin of 400 to 425 basis points over the five-year swap rate,
a market source who has seen the term sheet said on Wednesday.
Bids are due on Monday after a series of investor roadshows
in New Zealand with the final margin to be announced on
Tuesday, the source said.
The issue consists of perpetual non-cumulative shares
expected to pay fully imputed dividends. The notes, to be
issued by BNZ Income Securities 2 Ltd, are callable in 2014 and
rated A+ by S&P and A1 by Moody's.
Bank of New Zealand, Forsyth Barr, Goldman Sachs JBWere
(NZ) are jointly managing the offer.
The issue, announced this week, can take unlimited
oversubscriptions and is only open to retail and wholesale
investors in New Zealand.
Bank of New Zealand, a unit of National Australia Bank
(NAB.AX), is New Zealand's third-largest lender.
Proceeds of the offer will be used to fund general
corporate purposes. Tier 1 is a form of liquid capital that
banks are required to maintain as a cushion to protect bank
deposits.
It is the closest type to equity and also the most
expensive form of debt for banks.
BNZ raised a similar offer in 2008 when it sold NZ$448.4
million ($356 million) of Tier 1.
Key offer dates:
Bids due: May 25
Margin announcement May 26
Rate set: 26 May
Offer closing: 23 June
Issue date: 26 June
Rate reset date: 26 June 2014
(Reporting by Cecile Lefort, editing by James Regan)
