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Deposit rate news briefs

Latest deposit rate changes, NZX clarifies Bridgecorp's list approaches, PINs and Credit Sails impacted in credit squeeze, NZ Finance outlines brokerage amounts, Nuplex capital notes offer.

Monday, August 13th 2007, 10:28AM
Bank of New Zealand increased the rates on its Total Money accounts 25 points. Total Money is a savings account which now is paying 5.75% on amounts up to $49,999, 6.75% for amounts up to $99,999 and 7.75% for amounts of over $100,000.

The other bank change recorded last week TSB joining in the battle for one-year money. It has increased its rate 10 points, however has conditions including a minimum of $10,000 and interest on maturity.

The biggest finance company to move rates last week was Strategic. All its rates for terms of a year or more sit in a narrow band from 9.00% to 9.40% which its sharpest offering being the three year term; 9.40% for amounts of more than $50,000 and and 9.25% for smaller amounts.

Also Allied Nationwide, the newly created company formed from the merger of Allied Prime and Nationwide Finance increased its call rate 54 points.

Gold Band increased its 9, 18 month and 2 year secured debenture rates by 50 points, and its 6 month, 1 and 3 year rates by 25 points.

NZX clarifies position on Bridgecorp listing
The NZX has clarified its position on Bridgecorp's past applications to list on the exchange.

It says Bridgecorp first approached the then NZSE for listing in February 1999. The profile was accompanied by the most recent financial statements to 31 March 1998. In June 1999 this listing application was declined.

A second listing application was made in February 2000. A report was prepared in March 2000 to assist the listing sub-committee of NZSE consider this second application. In March 2000 this second application was declined.

"A copy of the report was sent to the Bridgecorp auditors and the company's directors, with a recommendation to the chairman of directors that a copy of the report be sent to the trustee," NZX says.

"Bridgecorp has not approached NZX for listing in the past seven years."

PINs and Credit Sail impacted

PINS has reduced its net asset value backing in its Series 1 notes and Credit Sails has been put on a negative credit watch.

The estimated net asset value of the PINs Series 2006-1 (PNZFB) was $92.63 per $100 par value as at August 6, the company says.

This value is calculated "using estimates provided by underlying investment managers and where weekly estimates could not be obtained will include assumptions made by the investment manager on the performance of some underlying funds. Actual performance of those funds could differ from that contemplated by the estimated NAV," the company says.

Meanwhile Standard & Poor's Ratings Services has placed its Ap N.R.i rating on the $91.5 million Series 2006-1 credit-linked notes issued by Credit Sail on CreditWatch with negative implications.

NZF discloses commissions
NZ Finance has publicly disclosed the commission levels it pays to advisers.

It says it has never deviated from the schedule below.

  • 3 months: 0.125%
  • 6 months: 0.25%
  • 9 months: 0.375%
  • 12 months: 0.50%
  • 18 months: 0.75%
  • 2 years: 1.00%
  • 3 & 4 years: 1.50%
  • 5 years: 2.00%
"NZF has never deviated from this payment structure since the company's inception in 1997. We have continued to grow our deposit base with the help of financial advisers using these payment levels and the advisers that we deal with have never asked for any further inducements beyond the brokerage we offer in our prospectus," chief executive John Callaghan says.

Nuplex capital notes offer
Nuplex Industries capital noteholders (NPX010) are required to make some decisions about their investment.

The decision is required as the notes are reaching election date. The options available are; either to retain some or all notes at a new interest rate of 9.30%, convert some or all notes held into fully paid Nuplex shares or to sell some or all notes held.

New notes issued after election date will have a maturity date of September 15, 2012 and will be known as 2012 Capital Notes.

« Yellow Pages considers $300 mill bond offerNothing likely for Bridgecorp noteholders »

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