Kiwibank has narrowed the indicative margin range for its latest subordinated notes offer, reducing it to 1.45% to 1.50% per annum.
The bank announced on 1st December that it is offering up to $200m of unsecured subordinated notes to New Zealand investors and certain institutional investors, with the ability to accept oversubscriptions at its discretion. The original indicative margin range was 1.50% to 1.70% per annum.
Kiwibank said the final margin may be set above or below the revised range. The actual margin and the initial interest rate will be determined following the bookbuild on 5th December and will be announced via NZX shortly after.
The interest rate for the first 5 years and 3 months will be fixed, based on the sum of the swap rate and the margin, until the first optional redemption date on 12th March 2031. After that, the rate will reset quarterly on a floating basis.
The notes are expected to be issued on 12th December 2025 and quoted on the NZX Debt Market on 15th December 2025.
Kiwibank has published a Limited Disclosure Document on the Disclose Register under offer number OFR14035.
The bank confirmed there is no public pool for the notes, with all allocations reserved for clients of joint lead managers, primary market participants and other approved intermediaries. Interested investors are encouraged to contact a joint lead manager or their financial adviser to register interest and obtain the disclosure document.
Kiwibank said the offer is being made in accordance with the Financial Markets Conduct Act 2013.