Kiwibank Limited registers Product Disclosure Statement for perpetual preference share offer

08/10/2021

Kiwibank Limited (Kiwibank) has today registered a Product Disclosure Statement (PDS) for an offer of up to $250 million of perpetual preference shares (PPS) to New Zealand investors. The offer will raise Additional Tier 1 Capital to help Kiwibank meet its regulatory capital requirements.

The PPS have no fixed term and will remain on issue indefinitely if not repaid by Kiwibank. Kiwibank may repay all of the PPS, if certain conditions are met, on 2 November 2026 and each subsequent five-year anniversary of that date, or for tax or regulatory reasons. The PPS have a credit rating of Ba1 from Moody’s Investors Service, reflecting their ranking behind other obligations of Kiwibank and the nature of the distribution payments.

Distributions on the PPS are scheduled to be paid quarterly but are discretionary and will not be paid if certain conditions are not met. If a distribution is not paid for any reason, it will never be paid. The initial Distribution Rate, which applies for the first five years, will be the sum of the Margin plus the five-year swap rate.

The Margin and initial Distribution Rate will be set following a bookbuild process on 21 October 2021, and will be announced by Kiwibank shortly thereafter and available at www.kiwibank.co.nz/about-us/governance/investor-centre/kiwibank-capital-instruments/. For so long as the PPS remain outstanding, the Distribution Rate will be reset at five-yearly intervals to be equal to the applicable Swap Rate and the same Margin.

The offer is expected to open on 18 October 2021 (with the indicative Margin range announced on the same date) and close on 21 October 2021. The PPS are expected to be issued on 2 November 2021 and quoted on the NZX Debt Market on 3 November 2021. 

Details of the offer and the PPS are contained in the PDS, which is available on the online Disclose Register maintained by the Companies Office (www.business.govt.nz/disclose/, offer number OFR13177). Copies of the PDS and Kiwibank’s roadshow presentation are also available at www.kiwibank.co.nz/about-us/governance/investor-centre/kiwibank-capital-instruments/, or by contacting one of the Joint Lead Managers or the Co-Manager to the offer (listed below) or your usual financial adviser.

Interest in the offer may be registered by contacting one of the Joint Lead Managers or the Co-Manager to the offer (listed below) or your usual financial adviser.

Joint Lead Managers

Co-Manager

0800 555 555


Enquiries:

Geoff Martin, Head of Funding - 04 439 6932, geoff.martin@kiwibank.co.nz

Kara Tait , External Communications Manager - 027 475 3521, kara.tait@kiwibank.co.nz