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

 

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Igniting The Spark: Bringing The Digital Enabler To Life

Changing a name is, relatively speaking, the easy part of a re-invention. Changing a culture, getting all the ducks in a row, turning yourself inside-out to become customer-inspired is a much bigger challenge. More>>

ALSO:

Ebola And NZ: Targeted Screening At Airport But Risk Low

The risk of any cases of Ebola in New Zealand remains very low, but health and border authorities are well prepared... anyone arriving in New Zealand who in the last three weeks has visited countries affected will be screened for symptoms of the disease. More>>

ALSO:

Scoop Business: Brewer Seeking Crowd-Funding Cancels Shareholders’ Dividends

Shareholders in Renaissance Brewing company, the first business to seek equity through crowd-funding in New Zealand, have cancelled their claim on $147,000 of accumulated earnings “to make Renaissance a more attractive investment opportunity.” More>>

ALSO:

It's Spark Now:
Why Telecom Wanted To Change

New Zealand led the world when Chorus demerged from Telecom. It gave us a telecommunications industry structure where the network is completely separated from the products and services it delivers. The changes brought about a new market dynamic and it dramatically changed Telecom’s role. More>>

ALSO:

Glass Half Empty: Dairy Prices Fall To Lowest Since 2012

Dairy product prices slumped to the lowest level since October 2012 in the latest GlobalDairyTrade auction, paced by whole milk powder and cheddar. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news