Rates round-up
Dorchester makes second repayment
Dorchester Finance has paid the second installment of principal to secured debenture holders, payable under the Deferred Repayment Plan (DRP).
The amount so far paid to debenture holders represents 25% of the total principal repayable under the DRP. A further 5% is due to be paid on 30 June 2009.
“We are satisfied with the progress we are making under the Deferred Repayment Plan and are currently ahead of expectations in relation to our cash position. We are well on track to make the next principal repayment on 30 June 2009,” executive director Paul Byrnes says.
ANZ National first lender to use guarantee for offshore bonds
ANZ National Bank is raising US$1 billion in a bond sale to overseas investors, the first such sale to use the government’s wholesale guarantee in offshore markets.
The sale of the three-year notes follows a roadshow in the US. The notes mature on 2 April 2012 and have a cost of approximately 2.5% over the New Zealand wholesale curve inclusive of the guarantee fee and other conversion costs, the bank said in a statement.
“The level of support for this offer is very encouraging for the Bank and is also significant for New Zealand as a whole,” chief executive Graham Hodges said. The sale is a reassuring sign of confidence in the New Zealand economy, he said.
The notes are expected to have a rating of AA+ with ‘negative’ outlook at Standard & Poor’s.
Fonterra considering another bond offerFonterra is considering a further sale of corporate bonds in the New Zealand market after the popularity its last offer in February.
The dairy cooperative sold $800 million of the six-year bonds paying 7.75% last month, almost threes time more than it had initially planned to sell. Investors are being lured to corporate bonds for higher yields as deposit rates dwindle.
“We were really encouraged by that,” chief executive Andrew Ferrier said in an interview. “We will consider another kiwi issue. We’re evaluating it now.
“Traditionally we have not been (raising debt funding) in New Zealand because it has been cheaper overseas,” Ferrier said. “But the way lenders are shrinking back to their own markets, New Zealand has become a more attractive place to borrow.”