Shareholders chip in
Kiwibank has had to go to its new shareholders for more money.
Monday, April 10th 2017, 6:00AM
Just six months after its partial sale, the bank has had to tap NZ Post, the NZ Super Fund and ACC for another $247 million of common equity, effective today.
It follows concerns from the Reserve Bank that the bank’s capital notes did not comply with its capital adequacy roles.
“Shareholders will fund proportionate to their existing shareholdings, reflecting recent announcements by shareholders that Kiwibank’s capital ratios will be maintained should the Reserve Bank determine that the convertible capital instruments are not fully compliant,” a spokesman said.
“Kiwibank remains of the strong view that existing convertible capital instruments are compliant and is working with the Reserve Bank of New Zealand to resolve this matter.”
The NZ Super Fund put out a statement, saying that the validity of Kiwibank’s capital was part of its due diligence before it bought shares.
NZ Post sold 47% of Kiwibank in October for $494m.
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