Issue of Tier 2 Capital Instrument
Heartland advised the market on 18 August 2015 of its intention for Heartland
Bank to issue a Tier 2 regulatory capital instrument (Tier 2 Capital) during
the financial year as part of its capital management strategy,
subject to
market conditions remaining favourable.
Heartland's current intention is for the Continuing Company to proceed with
the issue of Tier 2 Capital in April 2016. At this stage, the indicative
issue amount is $50 million with up to $25 million of oversubscriptions. An
issue of Tier 2 Capital would improve the Continuing Company's capital
efficiency through diversification of the sources and types of capital
funding, and would mean that the Continuing Company's capital structure is
more closely aligned with that of other New Zealand registered banks.
No shareholder approvals would be required to effect the Tier 2 Capital
issue, though further information will be provided in the Notice of Meeting
to shareholders for the upcoming Annual Meeting.
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