GENERAL: KCF: Kiwi Capital Funding Limited announces Capital Note offer 08:57a.m.
KCF
05/05/2014 08:57
GENERAL
REL: 0857 HRS Kiwi Capital Funding Limited
GENERAL: KCF: Kiwi Capital Funding Limited announces Capital Note offer
MEDIA RELEASE
5 May 2014
KIWI CAPITAL FUNDING LIMITED ANNOUNCES CAPITAL NOTE OFFER
Kiwi Capital Funding Limited (KCFL) has today announced an offer of up to
$100 million of unsecured subordinated Capital Notes to the New Zealand
public. Proceeds of the offer of Capital Notes will be used to invest in
convertible subordinated bonds to be issued by Kiwibank (a related company of
KCFL),
which will help Kiwibank meet its regulatory capital requirements
under the Reserve Bank's Basel III framework.
The Capital Notes have a maturity date of 15 July 2024 but may be called, if
certain conditions are met, by KCFL from 15 July 2019 and earlier for tax or
regulatory reasons. The Capital Notes have a credit rating of BB+ from
Standard & Poor's, reflecting their subordination and loss absorption
features.
Interest is scheduled to be paid semi-annually on the Capital Notes.* The
Margin and interest rate for the first five years until 15 July 2019 will be
set following a bookbuild on Wednesday 14 May 2014 and announced on or before
the Opening Date.
The Offer is expected to open on Thursday 15 May 2014 and close on Tuesday 3
June 2014 at 5pm. Interested investors should contact one of the Joint Lead
Managers to the offer (listed below) or their usual financial adviser to
request a copy of KCFL's Investment Statement for the Capital Notes.
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