sharetrader
Page 1 of 2 12 LastLast
Results 1 to 10 of 15

Thread: IAGFB Bond

  1. #1
    Member
    Join Date
    Mar 2010
    Posts
    473

    Default IAGFB Bond

    Anybody holding. Daughter has sold house and sizeable sum to invest 6mths. At 5.15% and current price on NZDX about par seems a reasonable choice. Havn't been following IAGFB so not up with any goss. Would appreciate any feedback.
    Thanks

  2. #2
    Senior Member
    Join Date
    May 2007
    Location
    Auckland, , New Zealand.
    Posts
    782

    Default

    No feedback as such, but I do hold. I bought them when they were IAGFA with a return a couple of % higher. As rates fell they decided to pay out on them and issue the FB bonds. I'm happy enough to have them in my bond holdings.

  3. #3
    Legend peat's Avatar
    Join Date
    Aug 2004
    Location
    Whanganui, New Zealand.
    Posts
    6,435

    Default

    they are fixed rate 5.15 until 2022 at which point they not only become repayable solely at the decision of the Issuer every quarter but also revert to a 2.6% margin over the 90 day bill rate. They they last for another 14 years or so. and then they might become equity .
    Thats my understanding of these hybrid notes (I wouldnt call them a bond quite frankly)
    For clarity, nothing I say is advice....

  4. #4
    Senior Member
    Join Date
    May 2007
    Location
    Auckland, , New Zealand.
    Posts
    782

    Default

    You're right, bond was probably not describing them correctly, but I didn't want to create another section on my spreadsheet :-)

  5. #5
    Legend peat's Avatar
    Join Date
    Aug 2004
    Location
    Whanganui, New Zealand.
    Posts
    6,435

    Default

    interestingly on the 1st November the IAGFA's have been called in for redemption.

  6. #6
    Veteran novice
    Join Date
    Jun 2007
    Location
    , , .
    Posts
    7,289

    Default

    Quote Originally Posted by peat View Post
    interestingly on the 1st November the IAGFA's have been called in for redemption.
    This was signalled some time ago. The IAGFB's replace them, at a lower interest rate. of course! Holders of the A's received an offer to (partially) replace them with the B's.

  7. #7
    Senior Member
    Join Date
    May 2007
    Location
    Auckland, , New Zealand.
    Posts
    782

    Default

    Which is what I did. Holders of the A's were able to transfer into the B's and received a payment at the old interest rate up to the old notes call date so as to not disadvantage them from pulling out of the A's early to get into the B's (phew).

  8. #8
    Senior Member
    Join Date
    May 2007
    Location
    Auckland, , New Zealand.
    Posts
    782

    Default

    Possibility these will be repaid in June (1st call date) according to Chris Lee newsletter yesterday.

  9. #9
    Senior Member
    Join Date
    May 2007
    Location
    Auckland, , New Zealand.
    Posts
    782

    Default

    Confirmed today that they will be repaid in June.

  10. #10
    Senior Member
    Join Date
    May 2007
    Location
    Auckland, , New Zealand.
    Posts
    782

    Default

    And a new bond opens next week (21st). IAGFC. Rate still to be set, but 5-ish%?

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •