Kiwibank launches Perpetual Preference Share offer

KIWIBANK LIMITED PERPETUAL PREFERENCE SHARE OFFER – INDICATIVE MARGIN RANGE Kiwibank Limited (Kiwibank) has announced an 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 offer opens today, 14 October 2024, and is expected to close at 11.00am on 17 October 2024. 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 5 and a half years and on each quarterly Scheduled Distribution Payment Date after that, or at any time if a Tax Event or Regulatory Event occurs. The indicative Margin range for the PPS is 3.70% to 3.90% per annum. The actual Margin (which may be above or below the indicative Margin range) and the Distribution Rate for the first 5 and a half years will be set following the Bookbuild on 17 October 2024, and will be announced by Kiwibank via NZX shortly after that. The Distribution Rate will be a fixed rate for the first 5 and a half years until the First Optional Redemption Date (24 April 2030), after which it will change to a 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 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 Limited Disclosure Document (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. This offer is being made in accordance with the Financial Markets Conduct Act 2013.   Joint Lead Managers Bank of New Zealand 09 375 1391 Craigs Investment Partners Limited 0800 272 442 Forsyth Barr Limited 0800 367 227