Kiwi Capital Securities Ltd Minimum Dividend Rate

Kiwi Capital Securities Ltd Minimum Dividend Rate
of 8.13% P.a. for the First Five Years

Kiwi Capital Securities Limited, a related company of Kiwibank Limited, today announced details of the offer of perpetual callable non-cumulative preference shares (Shares), to be known as Kiwi Income Securities. The offer opens on 8 April 2010 and is expected to remain open until 30 April.

The Shares will have a minimum dividend rate of 8.13% p.a. for the first five years. If a dividend is paid when scheduled, it will be comprised of a cash payment and, to the extent available, imputation credits attached to the cash payment. The cash payment will be a proportion of the dividend rate. The actual dividend rate for the first five years will be set on 3 May 2010, and will be set at a margin of 2.90% p.a. over the five year swap rate (adjusted as necessary to a quarterly rate) on that date or at the minimum dividend rate, whichever is the higher.

Richard Schofield, Kiwibank Limited's Treasurer, said that the offer attracted strong demand. “We are delighted with the support shown for the offer. The offer was oversubscribed in the bookbuild process and has been largely allocated on a firm basis to various financial intermediaries and institutions. Oversubscriptions of $40 million have been accepted in the firm bookbuild process and a pool of up $10 million has been established for clients of Kiwibank Limited.” Assuming this pool is fully subscribed, the issue size will be $150 million. There is no public pool.

The proceeds from the issue of the Shares are to be ultimately used to provide tier 1 capital to Kiwibank Limited.

The Shares are not shares in Kiwibank Limited, but are Shares in Kiwi Capital Securities Limited. The Shares will not entitle holders any voting rights in relation to Kiwibank Limited, and only limited voting rights in relation to Kiwi Capital Securities Limited.

Kiwi Capital Securities Limited’s ultimate parent company is New Zealand Post Limited. The Shares are not guaranteed by New Zealand Post Limited, Kiwibank Limited or any other person.

ANZ National Bank Limited has been appointed as Arranger for the offer. The Joint Lead Managers for the offer are ANZ National Bank Limited and Kiwibank Limited and the Co-Managers are Craigs Investment Partners Limited and Forsyth Barr Limited.

Applications for the Shares can only be made using the application form included in the Investment Statement for the Shares. Investors should contact any of the Joint Lead Managers or the Co-Managers or their financial advisor to request a copy of the Investment Statement to secure an allocation of the Shares.*

* Applications for Shares can only be made using the application form included in the Investment Statement. No applications for Shares issued by Kiwi Capital Securities Limited will be accepted or money received unless the subscriber has received the Investment Statement for the offer. The minimum application amount in respect of the Shares is $5,000 and in multiples of $1,000 thereafter.

ENDS

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