Bank of New Zealand Bond Issue

15 March 2007

Bank of New Zealand Bond Issue

Bank of New Zealand today tapped the existing 15 September 2010 series 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.

Bank of New Zealand issued NZ$ 125 million of three and a half year bonds with a maturity of 15 September 2010. This issuance takes the total outstanding in this maturity to NZ$ 225 million.

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 7 basis points over the swap mid-rate. The yield to maturity was 7.69% on issue, set on 13 March 2007.

The issue was oversubscribed by NZ$ 40 million (40%), with NZ$ 25 million of oversubscriptions accepted. Strong demand was apparent from a wide cross section of institutional investors, and retail investors were also strong buyers, taking 42% of the issue.

Bank of New Zealand now has on issue bonds in the following maturities and amounts:

15 September 2007 NZ$100 million
15 September 2008 NZ$100 million
15 September 2009 NZ$100 million
15 September 2010 NZ$225 million
15 September 2011 NZ$200 million
15 September 2012 NZ$100 million

ENDS

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