Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


ANZ, BNZ may make call on high-coupon notes

ANZ, BNZ may make call on high-coupon notes, sending $1.28B looking for new home

By Jonathan Underhill

Jan. 10 (BusinessDesk) – Some $1.28 billion of investment funds could be looking for a high-yielding home in the next few months amid speculation ANZ New Zealand and a local unit of National Australia Bank will call hybrid notes they sold in 2008 when interest rates were high.

ANZ has $835 million of perpetual callable subordinated bonds with a first call date of April 18. They carry a coupon of 9.66 percent, deemed reasonable in 2008 though since then bond yields have fallen by at least 300 basis points.

BNZ Income Securities, a special purpose vehicle of NAB, has about $450 million of perpetual non-cumulative shares which come up at the end of March and have a coupon of 9.89 percent.

“The banks have got a lot of money – there’s a reasonably strong chance they will call those investments,” said James Smalley, a client adviser at brokerage Hamilton Hindin Greene. “That’s going to continue to underpin our market going forward in a low interest rate environment.”

ANZ spokesman Peter Barnao said no decisions have been made yet on the perpetual bonds and any announcement would need to go to the NZX first. BNZ spokeswoman Emily Davies also said no decision had been made.

ANZ last year called and repaid $350 million of subordinated bonds issued in 2007 with a coupon of 8.23 percent. BNZ also called $350 million of subordinated bonds sold in 2007 with a coupon of 8.42 percent.

The banks could also elect to re-set the interest rate on their securities or make a new issue.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Statistics: Net Annual Migration Passes 71,000

A record 71,300 more migrants arrived in New Zealand than left in the January 2017 year, Statistics New Zealand said today. This surpassed the previous annual record set in December 2016. More>>

ALSO:

Fossils: Ancient Penguins Lived Alongside Dinosaurs?

Penguins are much older than previously thought and their evolution probably dates back to the days of the dinosaurs, according to research on the fossilised leg bone and toes of a giant ancient penguin found in rocks near Waipara, North Canterbury. More>>

No Voda/Sky: Commission Declines Clearance For Merger

The Commerce Commission has declined to grant clearance for the proposed merger of Sky Network Television and Vodafone New Zealand. More>>

ALSO:

EARLIER:

Power: IEA Report On New Zealand's Energy System

Outside of its largely low-carbon power sector, managing the economy’s energy intensity and greenhouse gas emissions while still remaining competitive and growing remains a challenge. More>>

ALSO:

NASA: Seven Earth-Size Planets Around A Single Star

NASA's Spitzer Space Telescope has revealed the first known system of seven Earth-size planets around a single star. Three of these planets are firmly located in the habitable zone, the area around the parent star where a rocky planet is most likely to have liquid water. More>>

ALSO:

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news