BNZ to redeem $350m of bonds early, offer other investments
Bank of New Zealand is redeeming its $350 million of subordinated callable bonds five years early but is encouraging investors to reinvest the money in other BNZ securities.
Tuesday, May 22nd 2012, 3:26PM
by Jenny Ruth
The bank will redeem the June 2017 bonds on June 15 and says it may consider another offer of retail bonds to coincide with the redemption.
As well, it is offering bond holders an extra 0.2% a year on term deposits between $5,000 and $1 million for 30 days or longer - the offer is exclusive to bond holders and is open until July 6.
BNZ is currently offering 2.75% for 30-day deposits through to $5.5% for five years.
The redemption had been expected by the market because the amount BNZ can treat as capital under Reserve Bank banking rules is diminishing.
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