Strong demand for ANZ's tier one issue

NZ New Zealand has doubled the size of its tier one capital note issue to NZ$500 million. The issue is the first tier one issue in six years in New Zealand and the first by ANZ NZ.

The bank's treasurer, Paul Daley, said ANZ had accepted NZ$250 million of over-subscriptions after strong investor demand for the BBB- rated notes. The mandatory convertible, non-cumulative, perpetual, subordinated, and unsecured notes were marketed to retail investors and can be exchanged from May 2020. They were priced at a margin of 3.5 per cent above the 90 day bill rate from the exchange date, with a fixed rate of 7.2 per cent before then.

Westpac New Zealand, meanwhile, closed a NZ$500 million issue of three year Floating Rate Notes at an indicative margin of 50 basis points over the 90 day bill rate. The senior, unsecured and unsubordinated notes will be priced on March 16.