National Australia Bank, through Bank of New Zealand, sold NZ$450 million in hybrid capital in the form of a perpetual share issue, and NZ$100 million more than planned.
BNZ told
Interest.co.nz that it set the interest rate for the first five year period on the BNZ Income Securities at 9.89 per cent, or 2.2 percentage points above the five year swap rate.
A decline in swap rates in recent days helped lower the cost of the funds to BNZ compared to initial planning.