Story image

KiwiBank mulls $150 million note sale

10 Apr 15

Kiwibank, the banking unit of state-owned New Zealand Post, is mulling a $150 million note sale to help the bank meet regulatory requirements.

The bank's Kiwi Capital Funding unit is considering the sale of perpetual capital notes to invest in "regulatory capital instruments to be issued by Kiwibank, which will help Kiwibank meet its regulatory capital requirements under the Reserve Bank's Basel III framework," it said in a statement. It expected to make a formal offer later this month, and is yet to detail interest rate on the notes.

Launched in 2002, Kiwibank had 880,000 customers as at Dec. 31, accounting for one in four of all bank account holders in New Zealand, with about half of those having their main banking with the state provider, giving it an estimated 11.6 percent of the market. The bank, which is focused on small to medium business and individual customers, has benefited from the wide reach of NZ Post's retail store network, and it took over management of the stores in the latest period.

Earlier this year, the lender said it expects this year to pay its first annual dividend after 13 years of operation, reflecting its increased size, record profits and its ability to fund its own activities. Kiwibank increased profit 37 percent to a record $71 million in the six months ended Dec. 31, with the banking unit accounted for the bulk of NZ Post's $100 million profit in the period.

Kiwi Capital Funding has $100 million worth of bonds on the NZX debt market due in 2019, which are currently priced at $106.76 per $100 face amount, with an interest rate of 5.25 percent.

Report finds GCSB in compliance with NZ rights
The Inspector-General has given the GCSB its compliance tick of approval for the fourth year in a row.
Preparing for e-invoicing requirements
The New Zealand and Australian governments are working on a joint approach to create trans-Tasman standards to e-invoicing that’ll make it easier for businesses in both countries work with each other and across the globe
5c more per share: Trade Me bidding war heats up
Another bidder has entered the bidding arena as the potential sale of Trade Me kicks up a notch.
Hootsuite's five social trends marketers should take note of
These trends should keep marketers, customer experience leaders, social media professionals and executives awake at night.
Company-X celebrates ranking on Deloitte's Fast 500 Asia Pacific
Hamilton-based software firm Company-X has landed a spot on Deloitte Technology’s Fast 500 Asia Pacific 2018 ranking - for the second year in a row.
Entrepreneur reactivates business engagement in AU Super funds
10 million workers leave it up to employers to choose their Super fund for them – and the majority of employers are just as passive and unengaged at putting that fund to work.
Tether: The Kiwi startup fighting back against cold, damp homes
“Mould and mildew are the new asbestos. But unlike asbestos, detecting the presence – or conditions that encourage growth – of mould and mildew is nearly impossible."
Capitalising on exponential IT
"Exponential IT must be a way of life, not just an endpoint."