Tuesday 24th March 2009 |
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The notes pay annual interest through until November 15, 2014, the reset and step-up date. The initial margin is 2.8%, the postal service's finance unit said in a statement.
All $200 million of the notes will be sold to clients of investors who participated in its bookbuild and there won't be a public pool. The debt matures in November 2039.
The offer opens on March 25 and closes on April 22. NZ Post joins companies including Vector, New Zealand's No. 2 electricity and gas distributor, in eyeing the debt market to raise funds as dwindling deposit rates spur investors to seek higher returns. Contact Energy, Fonterra Cooperative and Auckland International Airport in tapping the debt market for funds. Contact pays annual interest of 8% on the five-year bonds it sold this month.
ANZ Bank is offering 3.5% on a two-year term deposit for amounts over $5,000. Bank of New Zealand offers just 2% and Kiwibank offers 5%, according to the GoodReturns.co.nz website.
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