NZ Post completes NZ$200 million sale of bonds paying 7.5%

Friday 24th April 2009

New Zealand Post Group Finance completed its $200 million sale of bonds that pay 7.5% annual interest.

The notes pay annual interest through until Nov. 15, 2014, the reset and step-up date. The initial margin is 2.8%, the postal service's finance unit said in a statement. The debt matures in November 2039.

All $200 million of the notes were sold to clients of investors who participated in its bookbuild. The sale was for $150 million of notes, rated A by Standard & Poor's, with oversubscriptions of NZ$50 million.

NZ Post chairman Jim Bolger the postal service is delighted with the positive reception to this offer and the large number of investors who participated in the offer, which maintains New Zealand Post's very strong financial position.

The notes are expected to begin trading on the NZDX market on April 27. NZ Post joins corporate including Contact Energy in selling debt securities, taking advantage of dwindling deposit rates, which spur demand for fixed-income returns.

Businesswire.co.nz

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