Bank of New Zealand sets margin of NZ$ Tier 1 issue

(For the latest Australia and New Zealand bond news, double
click on [AU/CRD] and then double click on the ID number)

SYDNEY, March 4 (Reuters) - The Bank of New Zealand, a unit
of National Australia Bank (NAB.AX: Quote, Profile, Research, Stock Buzz), has set the margin of its
Tier 1 capital hybrid issue at 220 basis points over five-year
swap, a market source said on Tuesday.

This is at the high end of the 190 to 220 basis points
price guidance range.

The issue is of NZ$350 million ($282 million) with a
further NZ$350 million in an oversubscription allotment. It
consists of perpetual non-cumulative shares, and is solely
managed by Bank of New Zealand.

The proceeds will be used for general corporate purposes.

The notes are callable in 2013. The offer opens on March 4
and ends on March 21.

Moody's has assigned an A1 rating to the notes.
($1=NZ$1.24)
(Reporting by Cecile Lefort)