Bank of New Zealand launches NZ$700 mln Tier 1

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SYDNEY, Feb 25 (Reuters) - The Bank of New Zealand, a unit
of National Australia Bank (NAB.AX: Quote, Profile, Research, Stock Buzz), said on Monday it has
launched a Tier 1 capital hybrid issue of up to NZ$700 million
($564 million).

The offer, consisting of perpetual non-cumulative shares,
is solely managed by Bank of New Zealand.

The issue is of NZ$350 million with a further NZ$350
million in an oversubscription allotment. The notes are
callable in 2013.

The margin will be determined on March 3, following a
three-day roadshow that is taking place this week, a market
source said.

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