So NZP are going for remarketing of the NZP010 bonds. New terms to be announced 29 September and will need 25% uptake to continue. Less than 25% will result in the step-up margin of 3.80% over 5 year swap, with ability to redeem on any dividend date. The rate would be over 8% if set today in this way.

Based on other bonds around, I would think the remarketing rate would need to be around 6.5% to get enough response and avoid holders gambling on the step-up rate? Then again, the investment grade bonds (especially A grade) are trading at pretty low levels (is ANBHA a good comparison, being another 5 yr reset?)

Guess we will find out soon enough.