Bonds

[kiwi2007]

   https://www.ft.com/content/b287997b-a048-426c-bab3-9a6a97486c17

   The record-breaking global bond market rally since the start of this year has fizzled out as mounting signs of persistent inflation force investors to reverse their views on the likely future path of interest rate rises......

.......
   Some big investors say the recent sell-off is a sign that it is too soon to pile into bonds; that moment is likely to come later in the year.

"Of course the Fed will at some point cut rates, but the market was trying to pre-empt that . . . and it was so, so premature," said Sonal Desai, chief investment officer of Franklin Templeton. "I still think it is a very good year for fixed income. I just don't think we're there yet."

[kiwi2007]

New Issues

Kiwi Property Group Limited

6.5-year fixed-rate senior secured green bonds. An interest rate above 6.50%p.a. is expected for the BBB+ rated issue.

Heartland Bank unsecured subordinated notes

Heartland Bank Limited is considering making an offer of up to $125 million of unsecured subordinated notes.

It is expected that full details of the offer will be released in mid-March 2023 and an interest rate in the vicinity of 7.00%p.a. is possible.

[kiwi2007]

Kiwi Property has set its $125m six-and-a-half-year green bond at an interest rate of 6.24% following the bookbuild.

[kiwi2007]

Contact (CEN) has announced that it is considering an offer of 6-year fixed rate, senior green bonds. It is likely that these bonds will have an interest rate above 5.70% per annum.

Christchurch City Holdings (CCHL)
CCHL maybe offering 5-year unsecured, unsubordinated, fixed rate bonds to both retail investors and institutional investors. AA rated.

[kiwi2007]

Heartland Bank Limited (HBL) has announced that it is considering an offer of subordinated notes.

The notes are expected to have a 10-year maturity date but may be repaid after 5 years if certain conditions are met.

At this stage the interest rate has not been set but based on comparable market information it is likely to offer around 7.00% fixed for the first 5 years (with interest paid quarterly). After 5 years the interest rate will be reset to a new interest rate (unless the Notes are repaid on this date).

[kiwi2007]

Best site for monitoring bond prices.
https://www.interest.co.nz/bonds-data/issues

[Basil]

NZDX is better and gives real data on bid and ask yields and trades.
For example, that site above lists ARV 010 bonds as 6.9% yield to maturity but they traded a whopping 6 million+ at 7.27% on Friday, more than 5% of the entire bond issue traded in one day! I think a big institutional seller sold out their entire holding.
https://www.directbroking.co.nz/directtrade/dynamic/fixedinterest.aspx

The Heartland issue worries me in terms of plain English, where do the bonds stand if there's a banking crisis?  (Not a completely implausible possibility in my opinion).  From what I have read Heartland themselves do not guarantee the bonds.  I stopped reading after that because that's all I really needed to read.

[kiwi2007]

NZDX is better and gives real data on bid and ask yields and trades.
For example, that site above lists ARV 010 bonds as 6.9% yield to maturity but they traded a whopping 6 million+ at 7.27% on Friday, more than 5% of the entire bond issue traded in one day! I think a big institutional seller sold out their entire holding.
https://www.directbroking.co.nz/directtrade/dynamic/fixedinterest.aspx

The Heartland issue worries me in terms of plain English, where do the bonds stand if there's a banking crisis?  (Not a completely implausible possibility in my opinion).  From what I have read Heartland themselves do not guarantee the bonds.  I stopped reading after that because that's all I really needed to read.

Of the three I think your link to direct broking is the best. Thanks I didn't know about that.

[kiwi2007]

Heartland Bank Limited (HBL) subordinated $100m subordinated note offer (including $25m over-subscriptions) will pay 7.51% for first 5 years.

[Glenorchy]

This Heartland Bond was not popular at all. I think it's the first time in a while that I've seen an offer where the full potential over-subscri[ption amount is not taken up - in this case they allowed for 50m over-subscriptions but have only had takers for 25m. There was no scaling on this. I guess there's a message in that.

[kiwi2007]

Kiwibank Bank – Subordinated Notes

Kiwibank Limited (KWB) has announced that it is considering an offer of subordinated notes.

The notes will have a 10-year maturity date but may be repaid after 5 years if certain conditions are met.

At this stage the interest rate has not been set but based on comparable market information it is likely to offer around 6.50% fixed for the first 5 years (with interest paid quarterly). After 5 years the interest rate will be reset to a new interest rate (unless the Notes are repaid on this date).

https://www.chrislee.co.nz/uploads//currentinvestments/KWB1T2.pdf

The notes are expected to be listed on the NZX, enhancing liquidity.

KWB has confirmed that it will be paying the transaction costs

[kiwi2007]

KiwiBank subordinated note will have a rate fixed of around 6.40% - 6.60% for the first five years.

[kiwi2007]

KiwiBank subordinated note will have a rate fixed of around 6.40% - 6.60% for the first five years.

Set at the lower end.
6.40% per annum until 12 May 2028, and then reset to a new fixed rate until the Notes are repaid.
Interest Payment Dates: Interest is scheduled to be paid quarterly in arrear on 12 February, 12 May, 12 August and 12 November during the Term, and the Maturity Date

Looks like the margin rate will be 2.20% on reset.

[kiwi2007]

BNZ announced it's considering a BBB rated  perpetual bond with an interest rate around 7%. BNZ to pay transaction costs.

[kiwi2007]

And another bond on it's way:
This time it's a Mercury 5 year Green Bond paying circa 5.5% and rated BBB+