TCNZ Finance Fixed Rate Bonds Interest Rates

TCNZ Finance Fixed Rate Bonds Interest Rates

TCNZ FINANCE FIXED RATE BONDS (“TELEBONDS”) - INTEREST RATES

TCNZ Finance said today that the interest rates for its TeleBonds scheduled to close on 21 March 2006 have been set. The rates are:-

Tranche Interest Rate

7 Year TeleBonds (maturing 22 March 2013) 6.92%

10 Year TeleBonds (maturing 22 March 2016) 7.04%

Interest on the TeleBonds is payable semi-annually in arrears. The first interest payment is on 22 September 2006. The TeleBonds will be issued on 22 March 2006 and are expected to list on the NZDX Market on the same day. The TeleBonds are unsecured unsubordinated interest bearing obligations of TCNZ Finance.

For the meaning of the capitalised terms above and the full terms of TeleBonds, please refer to the TCNZ Finance Investment Statement relating to the TeleBonds dated 3 March 2006.

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