Kiwi Capital Considering Preference Share Issue

Kiwi Capital Securities Ltd Considering Preference Share Issue

A related company of Kiwibank, to be called Kiwi Capital Securities Limited, is considering making an offer of up to NZ$100 million perpetual callable non-cumulative preference shares, to be known as Kiwi Income Securities, to the public (with the option to accept oversubscriptions of up to $50 million) and is seeking preliminary indications of interest.

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

Kiwi Capital Securities’ ultimate parent company is New Zealand Post Limited.

The shares will have no maturity date. However, the shares may be called on the fifth and tenth anniversary of their issue date and quarterly thereafter (and in certain other circumstances).

The dividend rate applying to the shares will be fixed for the initial five years and then reset for subsequent 5 yearly periods at the margin plus the swap rate applying at the time. Dividends are scheduled to be paid on a quarterly basis. Dividends are non-cumulative. An announcement of the margin and the minimum dividend rate for the shares is expected to be made on or around the opening of the offer which is anticipated to be in early April 2010 with full details of the issue to be contained in an Investment Statement and the Prospectus.

No money is currently being sought and no applications for shares will be accepted or money received until the subscriber has received an Investment Statement. Indications of interest will not involve an obligation or commitment of any kind.

ENDS