Bank of New Zealand Bond Issue Oversubscribed

26 May 2005

Bank of New Zealand Bond Issue Oversubscribed

Bank of New Zealand today launched the ninth tranche of its Registered Transferable Deposit bond programme in response to strong demand from institutional and retail investors for well-rated corporate bonds. Bank of New Zealand is rated AA- (outlook stable) by Standard and Poor’s.

The issue was oversubscribed by just over 30 per cent. Strong demand was apparent from a cross section of professional investors for the issue. The bonds are available to institutional and retail investors.

Bank of New Zealand issued $NZ100 million of seven year bonds with a maturity of 15 September 2012. As with all of the issues of the Registered Transferable Deposit programme, the coupon is 7.5%. The bonds were issued at a margin of 18 basis points over swap mid-rate. The yield to maturity was 6.80%.

Bank of New Zealand currently has on issue bonds maturing in 2005, 2006, 2007, 2008, 2009, and 2010.

Previously, Bank of New Zealand has issued $NZ100 million each of 15 September 2003 bonds, of 15 September 2004 bonds, of 15 September 2005 bonds, of 15 September 2006 bonds, of 15 September 2007 bonds, of 15 September 2008 bonds and of 15 September 2009 bonds, and $NZ 50 million of 15 September 2010 bonds.

Each maturity tranche size continues to be limited to a total of $NZ100 million. $NZ100 million facilitates liquidity, whilst a cap at this level enhances post-issue price performance.

ENDS

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