GTM 3442
26-04-2023, 03:59 PM
Issuer
Kiwibank Limited
Description
Unsecured Subordinated Notes (Notes)
Size
Up to $200 million sought
Ranking
In a liquidation of Kiwibank the Notes will rank behind depositors and other unsubordinated creditors
of Kiwibank, but ahead of Kiwibank's shareholders (including holders of perpetual preference shares)
Term
10 years, ending on the Maturity Date (12 May 2033) if not repaid earlier
Interest rate
The interest rate for the first five years will be a fixed rate equal to the sum of the Swap Rate on the
Rate Set Date plus the Margin. It will then be reset to be a fixed rate equal to the Swap Rate on the
Rate Reset Date plus the same Margin. The interest rate will not be less than 0% per annum.
I think it will probably be around 6.25%
Margin
Set on the Rate Set Date, announced by Kiwibank and will not change
Interest payments
Interest payments are scheduled to be paid quarterly in arrear and are subject to Kiwibank satisfying
the solvency condition. If interest is not paid on a Scheduled Interest Payment Date it will remain
owing and will itself bear interest.
Early repayment
Kiwibank has the option to repay on 12 May 2028 or on any Scheduled Interest Payment Date after
that dateš. Holders have no right to require the Notes be repaid early.
No guarantee
The Notes are not guaranteed by any member of the Kiwibank Banking Group, the Government or by
any other person
Credit Rating
Moody's Baa2
S&P BBB
Looking at 6.25% for 5 years with a BBB credit rating - what does this tell us about interest rates going forward?
Kiwibank Limited
Description
Unsecured Subordinated Notes (Notes)
Size
Up to $200 million sought
Ranking
In a liquidation of Kiwibank the Notes will rank behind depositors and other unsubordinated creditors
of Kiwibank, but ahead of Kiwibank's shareholders (including holders of perpetual preference shares)
Term
10 years, ending on the Maturity Date (12 May 2033) if not repaid earlier
Interest rate
The interest rate for the first five years will be a fixed rate equal to the sum of the Swap Rate on the
Rate Set Date plus the Margin. It will then be reset to be a fixed rate equal to the Swap Rate on the
Rate Reset Date plus the same Margin. The interest rate will not be less than 0% per annum.
I think it will probably be around 6.25%
Margin
Set on the Rate Set Date, announced by Kiwibank and will not change
Interest payments
Interest payments are scheduled to be paid quarterly in arrear and are subject to Kiwibank satisfying
the solvency condition. If interest is not paid on a Scheduled Interest Payment Date it will remain
owing and will itself bear interest.
Early repayment
Kiwibank has the option to repay on 12 May 2028 or on any Scheduled Interest Payment Date after
that dateš. Holders have no right to require the Notes be repaid early.
No guarantee
The Notes are not guaranteed by any member of the Kiwibank Banking Group, the Government or by
any other person
Credit Rating
Moody's Baa2
S&P BBB
Looking at 6.25% for 5 years with a BBB credit rating - what does this tell us about interest rates going forward?