Comparing current Bond Offers

With so many corporate bond offers in the market www.depositrates.co.nz has put together a table showing the key differences.

Investors are being inundated with corporate bond offers and more are likely, according the industry rumour mill.

Depositrates.co.nz has put together a handy table comparing what is on offer. The table below shows important details including the type of bond, maturity, interest rate and rating.

Investors need to consider the rate against the rating as this is a useful measure of the risk return equation.

In addition to that we have added information about liquidity, that is whether a security can be traded before maturity date. For investors seeking regular income the number of coupons, or times a year interest is paid is useful too.
Type
Term
Rate
Size
Overs
Rating
Liqudity
Coupons
Min
Dates
Fonterra
 Senior bonds
6 years
7.75%
$300m
500m
A+
NZDX
4
$5,000
 Closing 6/03
TOWER Senior bonds
5 years
8.50%
$80m
20m
^BBB-
NZDX
4
$5,000
 Closing 20/03
Akld City Council Secured bonds
5 years
6.00%
$100m
50m
AA
NZDX
2
$10,000
 Closing 20/03
Meridian Unsecured notes
9 months
5.25%
No max.
BBB-
No
3
$2,000
 Closing 31/03
Meridian Unsecured notes
12 months
5.00%
No max.
BBB-
No
4
$2,000
 Closing 31/03
Meridian Unsecured notes
18 months
5.00%
No max.
BBB-
No
4
$2,000
 Closing 31/03
NZ Post* Subordinated notes
30 years
tbd
$150m
50m
A
$5,000
 Open 25/03
Contact Energy Unsecured bonds
5 years
8.00%
$300m
yes
BBB
NZDX
4
$5,000
 Open 2/03
AMP Notes Unsecured Sub/Debt
10 years**
8.40-8.90%
$300m
yes
NZDX
$5,000
Closing 2/04

Updated: 13th March 2009

* Term is 30 years - however will be on the NZDX so it is tradeable. Closes 22nd April.
** These notes have a five year call option
^ TOWER's rating is AM Best

NOTES:
Overs: This is the amount of oversubscriptions the offer can accept.
Ratings: All ratings are from Standard and Poor’s unless indicated.

To compare ratings click here.

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