Strong Interest In NZ Post Group Finance Notes

24 March 2009

Strong Interest In New Zealand Post Group Finance Notes

New Zealand Post Group Finance Limited, a wholly-owned subsidiary of New Zealand Post Limited, has exceeded the initial target of $150 million in its issue of unsecured, subordinated notes and will accept over-subscriptions of $50 million.

New Zealand Post Limited Chairman, Jim Bolger, said today he was delighted with the outcome of the offer and the support shown by the New Zealand investment community.

New Zealand Post has also set the initial interest rate and the initial margin for the Notes. The initial interest rate is 7.50% and the initial margin is 2.80%.

$200 million of notes have been reserved for clients of participants in the bookbuild process who have received firm allocations. There will be no public pool.

The offer opens on 25 March and closes on 22 April. Interest on the notes will be paid from the time an investor’s application is banked and investors are encouraged to lodge their applications as soon as possible to take advantage of this.

The issue price is $1.00 per note with a minimum application amount of $5,000, thereafter in multiples of $1,000.

The notes are guaranteed by New Zealand Post Limited on an unsecured, subordinated basis. The Crown does not guarantee the notes or any obligation of the issuer or guarantor.

To obtain an Investment Statement, investors should contact their normal sharebroker or financial adviser. The Investment Statement is also available on New Zealand Post’s website at www.nzpost.co.nz/notes

Application has been made to NZX for permission to list the notes and all the requirements of NZX relating thereto that can be complied with on or before the date of this media release have been duly complied with. However, NZX accepts no responsibility for any statement in this media release.

ENDS

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