Kiwibank Limited registers Limited Disclosure Document for an offer of perpetual preference shares

Kiwibank Limited (Kiwibank) has registered a Limited Disclosure Document (LDD) for its offer of up to $100 million (with the ability to accept oversubscriptions at Kiwibank’s discretion) of perpetual preference shares (PPS) to New Zealand investors.

The PPS will constitute Additional Tier 1 Capital for Kiwibank’s regulatory capital requirements.

The PPS will not have a fixed term and will remain on issue indefinitely if not redeemed by Kiwibank. If certain conditions are met, Kiwibank may redeem the PPS after five and a half years on the First Optional Redemption Date (24 April 2030) or on each quarterly Scheduled Distribution Payment Date after that date. The PPS may also be redeemed if a Tax Event or Regulatory Event occurs.

The PPS have an issue credit rating of Ba1 from Moody’s Investors Service.

The Distribution Rate will be a fixed rate for the first five and a half years, after which it will change to a new floating rate that resets at quarterly intervals. Distributions are expected to comprise a cash amount and imputation credits. Distributions on the PPS are scheduled to be paid quarterly but are discretionary and subject to conditions. If a distribution is not paid when scheduled, Kiwibank is under no obligation to pay that distribution at a later date.

The offer is expected to open on 14 October 2024 and close on 17 October 2024. The PPS are expected to be issued on 24 October 2024 and quoted on the NZX Debt Market on 25 October 2024.

Details of the offer and the PPS are contained in the LDD, which is available on the Disclose Register at www.disclose-register.companiesoffice.govt.nz/ under offer number OFR13831.

There is no public pool for the PPS. All PPS will be reserved for subscription by clients of the Joint Lead Managers, Primary Market Participants and other approved financial intermediaries. Investors can register their interest and request a copy of the LDD by contacting a Joint Lead Manager or their usual financial advice provider.

Joint Lead Managers