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Preference Share Issue $50 million Oversubscribed


ASB CAPITAL RAISES $200 MILLION (NZD) - Perpetual Preference Share Issue $50 million Oversubscribed -

Statement made by Peter Hall, Head of Institutional Banking, ASB BANK Limited

ASB Capital’s $150 million (NZD) public issue of perpetual preference shares closed yesterday (December 9). Over subscriptions of $50 million (NZD) were accepted due to such a positive response to the $150 million (NZD) initially offered. Total subscriptions were well over $200 million (NZD), resulting in many applications being scaled.

The response from investors has been extremely positive and we are pleased with the spread and quality of the institutions and individuals that have taken up our offer.

Just under 4,500 investors have been allocated the preference shares.

The funds will be used to support ASB BANK’s ongoing growth in personal, business and rural banking.

The preference shares hold an ongoing gross interest rate of 1.30% above one-year interest rates (7.4% for the first year). This represents a very competitive rate of return for a highly rated security. Standard & Poors (Australia) Pty Limited have rated the issue at A- and the shares are freely tradable.

The New Zealand market is not as familiar with Perpetual Preference shares as other forms of equity investment, and the level of interest shown in the issue is a reflection of the growing maturity of New Zealand’s capital market.

The arranger of the issue was ASB BANK Limited, Lead Managers ASB BANK and UBS Warburg New Zealand Limited and organising broker ASB Securities Limited.


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