Kiwi Bonds extended to cover quake costs

New Zealand's government will step upo its marketing of bonds directly at retail investors as part of its funding program for the next few years, though interest rates on the bonds remain well below rates on term deposits from banks.

The New Zealand Debt Management Office will introduce

One rationale for introducing what will be called Kiwi Bonds is to tap into investor sentiment to help cover some of costs of reinbvetment in Christchurch.

The four year Earthquake Kiwi Bank will have a yield of four per cent, below the rate on wholesale debt for the New Zealand Debt Management office as well as below bank rates.