Chapman Tripp is pleased to have advised Kiwibank Limited (Kiwibank) on its successful $400 million Tier 2 notes offer.
The unsecured subordinated notes have a term of 10 years and 3 months, with the first optional redemption date after 5 years and 3 months. Proceeds from the offer will support Kiwibank in meeting regulatory capital requirements and managing its capital position, including following yesterday’s redemption of its 2020 Tier 2 notes.
Issued today, the notes are set to begin trading on NZX from Monday, 15 December 2025. The notes were offered to both New Zealand retail investors and certain offshore wholesale investors and attracted strong demand, allowing Kiwibank to complete its largest ever Tier 2 issuance at a margin of 1.45% over the swap rate.
From the first optional redemption date, the interest rate will change to a floating rate, resetting quarterly.
The Chapman Tripp team advising Kiwibank included Partner Luke Ford, Senior Associate Jessica Elder and Solicitor Kiara Klopper.
“Given the Reserve Bank’s capital review this year, regulatory capital issuances have been scarce. The scale of this transaction marks a significant milestone for Kiwibank and its pricing shows resounding market support, both for the issuer and for subordinated debt issuances more generally,” said Luke Ford.
Forsyth Barr acted as Arranger and Joint Lead Manager for the offer. BNZ and Craigs acted as Joint Lead Managers.
