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- Release Date: 25/03/14 10:30
- Summary: INTEREST: ABB: ASB Bank Limited sets rate on subordinated note offer
- Price Sensitive: No
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ABB
25/03/2014 08:30
INTEREST
REL: 0830 HRS ASB Bank Limited
INTEREST: ABB: ASB Bank Limited sets rate on subordinated note offer
ASB Bank Limited ("ASB") today announced the interest rate applicable to its
offer of subordinated unsecured debt securities ("ASB Notes") to raise up to
NZ$300 million, with the ability to accept oversubscriptions of up to NZ$100
million ("Offer").
The interest rate until the Call Option Date (15 June 2019) has been set at
6.65% p.a. This reflects a margin of 2.05% p.a. over the five year swap rate
on 24 March 2014 of 4.60% p.a. The interest rate will be reset on the Call
Option Date, but the margin of 2.05% p.a. will not change over the term of
the ASB Notes.
Applications to subscribe for ASB Notes must be for a minimum principal
amount of NZ$5,000 (and in multiples of NZ$1,000 thereafter).
ASB Notes are due to be repaid in full on the maturity date (15 June 2024).
ASB Notes may, depending on the circumstances, be repaid earlier, exchanged
into ordinary shares in Commonwealth Bank of Australia ("CBA"), or if this
exchange cannot occur, holders' rights under the relevant ASB Notes will be
terminated.
Investments in ASB Notes are an investment in ASB and may be affected by the
ongoing performance, financial position and solvency of ASB. ASB Notes may
also be affected by the ongoing performance, financial position and solvency
of CBA. They are not deposit liabilities or protected accounts of CBA for
the purposes of the Banking Act 1959 (Cth). CBA does not guarantee ASB or
the ASB Notes.
The full details of the Offer are contained in an investment statement dated
17 March 2014 and may be viewed at www.asb.co.nz/subordinated-notes.
Application has been made to NZX for permission to quote ASB Notes on the NZX
Debt Market and all the requirements of NZX relating thereto that can be
complied with on or before the date of this media release have been duly
complied with. However, ASB Notes have not yet been approved for trading and
NZX accepts no responsibility for any statement in this media release. NZX
is a registered exchange and the NZX Debt Market is a registered market under
the Securities Markets Act 1988.
ENDS
Released by: Christian May, ASB Corporate Communications
Mobile: 021 305 398, [email protected]
End CA:00248640 For:ABB Type:INTEREST Time:2014-03-25 08:30:09
