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ISCOVER
Staff Reporter
In a bid to raise $125 million, Heritage Bank has launched ASX listed debt securities, to be known as Heritage Bank Retail Bonds.
Heritage Bank Retail Bonds are five-year, senior, unsecured bonds which will pay interest at a fixed rate of 7.25 per cent on a quarterly basis.
Australia Ratings has assigned a ‘BBB+’ credit rating and ‘Green’ product complexity indicator to Heritage Bank Retail Bonds.
This is the first issue of senior, unsecured bonds to be listed on the ASX by a mutual bank in Australia.
According to a statement released by the company, Heritage Bank intends to raise $125 million from this offer, with the ability to raise more or less. The offer is being made as part of Heritage Bank’s ongoing liquidity management and funding strategy.
The Retail Bonds issue follows the successful ASX-listed Heritage Notes placement in October 2009, which was three times over-subscribed and raised $50 million in subordinated, unsecured debt securities.
Heritage Bank Chairman Mr Brian Carter said the Retail Bonds offered retail investors the opportunity to diversify their portfolio with a simply structured debt instrument that provides a fixed rate yield.
“The Heritage Bank Retail Bonds offer an attractive interest rate backed by the strength and stability of Heritage Bank,” he said.
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