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

 


ASB Bank Limited sets rate on subordinated note offer

ASB Bank Limited sets rate on subordinated note offer

ASB Bank Limited ("ASB") today announced the interest rate applicable to its offer of subordinated unsecured debt securities ("ASB Notes") to raise up to NZ$300 million, with the ability to accept oversubscriptions of up to NZ$100 million ("Offer").

The interest rate until the Call Option Date (15 June 2019) has been set at 6.65% p.a. This reflects a margin of 2.05% p.a. over the five year swap rate on 24 March 2014 of 4.60% p.a. The interest rate will be reset on the Call Option Date, but the margin of 2.05% p.a. will not change over the term of the ASB Notes.

Applications to subscribe for ASB Notes must be for a minimum principal amount of NZ$5,000 (and in multiples of NZ$1,000 thereafter).

ASB Notes are due to be repaid in full on the maturity date (15 June 2024). ASB Notes may, depending on the circumstances, be repaid earlier, exchanged into ordinary shares in Commonwealth Bank of Australia ("CBA"), or if this exchange cannot occur, holders' rights under the relevant ASB Notes will be terminated.

Investments in ASB Notes are an investment in ASB and may be affected by the ongoing performance, financial position and solvency of ASB. ASB Notes may also be affected by the ongoing performance, financial position and solvency of CBA. They are not deposit liabilities or protected accounts of CBA for the purposes of the Banking Act 1959 (Cth). CBA does not guarantee ASB or the ASB Notes.

The full details of the Offer are contained in an investment statement dated 17 March 2014 and may be viewed at www.asb.co.nz/subordinated-notes.

Application has been made to NZX for permission to quote ASB Notes on the NZX Debt Market and all the requirements of NZX relating thereto that can be complied with on or before the date of this media release have been duly complied with. However, ASB Notes have not yet been approved for trading and NZX accepts no responsibility for any statement in this media release. NZX is a registered exchange and the NZX Debt Market is a registered market under the Securities Markets Act 1988.
ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news