INDEPENDENT NEWS

Preference Share Issue By ASB Capital

Published: Mon 29 Nov 2004 02:29 PM
29 November 2004
Preference Share Issue By ASB Capital No. 2 Limited Successful Pre-Registration Period Sets Up $350 Million Offer
Statement made by Peter Hall, Chairman of ASB Capital No. 2 Limited
ASB Capital No. 2 Limited (ASB Capital No.2), a member of the Commonwealth Bank Group, confirmed today that it intends to make an offer to the public of Perpetual Preference Shares. The offer will open on Monday 29 November.
The new offer, which follows the successful $200 million offer of Perpetual Preference Shares by ASB Capital Limited in 2002, seeks to raise up to $350 million in funds. If successful it will constitute the largest ever issue of Perpetual Preference Shares in New Zealand.
ASB Capital No.2 used a recent amendment to the Securities Act to run a three week campaign seeking expressions of interest from the public. The response has been overwhelming with the expressions of interest substantially exceeding the amount of the offer. Due to the exceptional response from investors, there will be no public pool available and investors will need to contact their broker to access shares.
The level of interest in the offer reflects the quality of the instrument, the strength of ASB Bank’s core businesses and distribution platforms, and the success of the previous ASB Capital offer. The offer was also well timed to take advantage of a shortage of similar products in the marketplace.
This offer is a part of ASB Bank’s regular capital raising programme and proceeds of the offer will be used to fund the ongoing growth of the ASB Group of companies.
Perpetual Preference Shares have the characteristics of debt instruments but have no set final maturity date. The dividend rate on ASB Capital No. 2 Perpetual Preference Shares will be reset annually to reflect movements in benchmark interest rates. The initial dividend rate, for the period to 15 May 2005, is 7.65% per annum, payable quarterly. The quarterly dividends are expected to be fully imputed.
ASB Capital No. 2 Perpetual Preference Shares have a credit rating of A- from Standard and Poor’s
Minimum investment will be $5,000 and thereafter in multiples of $1,000. The issue is now open and is expected to close on December 21, with trading commencing on the NZSX on December 23.
ASB Bank Limited is the Lead Manager for the offer and ASB Securities is the Organising Participant.
ENDS
ASB Bank
Helping you get one step ahead.
In 1847, ASB opened as the Auckland Savings Bank with the pledge: 'to serve the community; to grow and to help Kiwis grow'. And that is very much what ASB is about today.
ASB is a leading provider of integrated financial services in New Zealand including retail, business and rural banking, funds management and insurance.
ASB strives to consistently provide its customers with outstanding service and innovative financial solutions. They're dedicated to providing simple financial products that allow their customers to bank with them how and when they want.
We all have our own ways to measure progress, and our own stories about the things that matter to us. Whatever way you choose to measure progress, and whatever your goals, ASB is there to help you get one step ahead.
Contact ASB Bank
Website:

Next in Business, Science, and Tech

New Law On Decommissioning Could Be Costly Overkill
By: Energy Resources Aotearoa
News Publishers’ Association Seeks Authorisation And Provisional Authorisation To Engage In Collective Bargaining
By: Commerce Commission
MPC Continues To Reduce Monetary Stimulus
By: Reserve Bank
Almost Two-fifths Of New Zealanders Don’t Feel Safe Enough To Shop In-store This Black Friday
By: PriceSpy
NZ Skeptics Announce Their 2021 Awards, And Dr Simon Thornley Wins The Bent Spoon
By: NZ Skeptics Society
Sales Volumes Leveling Out
By: REINZ
Auckland Retail Card Spending Bounces Back In Step Two
By: BNZ
View as: DESKTOP | MOBILE © Scoop Media