BNZ calls in $450m of notes
The perpetual non-cumulative shares, which were issued in 2008, pay a coupon of 9.89% but would have reset to a much lower interest rate after reaching the five-year mark on March 28 had NAB not chosen to repay investors instead.
The coupon rate for the next five years would have been set at 220 basis points over the five-year swap rate, which based on today’s rate, would have been about 5.8%.
"BNZ Income Securities Limited wishes to advise that National Australia Bank Limited (BNZ's parent) is exercising its right to call the shares on the Call Date, being 28 March 2013," the bank said in an NZX announcement today.
"We wish to advise you that the persons recorded on the Share register as the holder of the Shares as at 5pm on 18 March 2013 (being the Record Date for the purposes of the NZX Listing Rules) will be the persons who will receive the payment for the Shares, and the dividends accrued on the Shares, on 28 March 2013."
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