Kiwibank eyes $150 mln bond offer after S cuts rating
Nov. 1 (BusinessDesk) - State-owned lender Kiwibank is looking at raising up to $150 million from a subordinated bond
offer, after its credit rating was cut a notch by Standard & Poor's.
The Wellington-based bank is considering a public offer of unsecured, subordinated bonds, with the formal documents
likely to be released next week, it said in a statement.
The debt sale comes days after S cut the credit ratings of Kiwibank and its parent, New Zealand Post, to A+ from AA-, citing the group’s growing
reliance on its banking operations and expectations of dwindling postal revenues.
Craigs Investment Partners has been appointed arranger, and is joint lead manager with Kiwibank. ANZ New Zealand is
co-manager with Forsyth Barr.
Kiwibank had some $1.81 billion in issued debt securities as at June 30, according to its annual report.
(BusinessDesk)