Kiwibank Successfully Raises Funds In Australia

15 October 2009

MEDIA RELEASE

Kiwibank Successfully Raises Funds In Australia

Kiwibank has successfully raised $A250 million ($NZ309 million) through a bond issue in Australia. This is the bank’s first entry into the international wholesale bond market since the bankwas launched in 2002.

The bank made presentations to investors last week, seeking to raise a minimum of $A200 million. The bond offer closed yesterday morning. The $A250 million raised is priced at a margin of 42 basis points over bank bill swap rates.

The bonds are guaranteed by the bank’s parent, New Zealand Post Limited, and are provisionally guaranteed by the New Zealand Government under the Crown Wholesale Funding Guarantee Scheme. A final Guarantee Eligibility Certificate for the bonds is expected to be issued in the next few days. The bonds are expected to be rated as Aaa by Moody’s and AA+ by Standard & Poor’s.

HSBC was lead manager on the issue with co-managers RBS and UBS.

Kiwibank Treasurer Richard Schofield described the successful issue as “a significant and landmark transaction as it represents the bank’s first public debt raising offshore”.

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