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AMP Notes close; NZX data shows debt issuance towers above equity this year

Tuesday, April 14th 2009, 5:14AM

AMP Notes close
AMP Group Finance Services has closed the offer of AMP Notes, successfully raising A$296 million from the issue of the new securities.

It was expected the notes would commence trading on the Australian and New Zealand sharemarkets at the end of last week.

NZX data shows debt issuance towers above equity this year
New Zealand companies raised 10 times more debt than equity in the first quarter, as falling interest rates and a weak economy spur demand for regular fixed payments.

Some $1.2 billion of new debt securities were sold through the NZX last quarter, the market operator said in a statement. That compares with about $141 million of new equity raised.

Demand for debt securities of well-rated companies is running hot because deposit rates have dwindled as the central bank cut interest rates, reducing the income for people dependent on their investment income.

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