BNZ launches perpetual preference share offer

Exchange announcement 5 August 2024 BNZ launches perpetual preference share offer Bank of New Zealand (BNZ) announced today that it is making an offer of up to NZ$100 million of perpetual preference shares (PPS 2) to New Zealand investors. BNZ has the ability to accept oversubscriptions at its discretion. The offer opens today, 5 August 2024, and is expected to close at 11:00am on 9 August 2024. The PPS 2 will constitute Additional Tier 1 Capital for BNZ’s regulatory capital requirements. The PPS 2 will not have a fixed term and will remain on issue indefinitely if not redeemed by BNZ. If certain conditions are met, BNZ may redeem the PPS 2 on the first optional redemption date (21 August 2030) and on each quarterly scheduled distribution payment date thereafter, or at any time for tax or regulatory reasons. The indicative margin range for the PPS 2 is 3.50% to 3.70% per annum. The actual margin (which may be above or below the indicative margin range) and initial distribution rate will be set following a bookbuild process on 9 August 2024 and will be announced by BNZ via NZX shortly thereafter. The distribution rate will be a fixed rate for the first 6 years until the first optional redemption date (21 August 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 2 are scheduled to be paid quarterly but are discretionary and will not be paid if certain conditions are not met. If a distribution is not paid for any reason, BNZ is under no obligation to pay that distribution at a later date. The PPS 2 are expected to be issued on 21 August 2024. Only clients of the Joint Lead Managers (JLMs) and other Primary Market Participants and approved financial intermediaries invited to participate in the bookbuild process can apply for the PPS 2. Details of the offer and the PPS 2 are contained in the limited disclosure document, available on the online Disclose Register maintained by the Companies Office (www.disclose-register.companiesoffice.govt.nz offer number OFR13773). Investors can register their interest by contacting any of the JLMs or their usual financial advice provider. Ends