Kiwi Capital Funding Limited Announces Capital Note Offer

Kiwi Capital Funding Limited Announces Capital Note Offer

Kiwi Capital Funding Limited (KCFL) has today announced an offer of up to $100 million of unsecured subordinated Capital Notes to the New Zealand public.

Proceeds of the offer of Capital Notes will be used to invest in convertible subordinated bonds to be issued by Kiwibank (a related company of KCFL), which will help Kiwibank meet its regulatory capital requirements under the Reserve Bank’s Basel III framework.

The Capital Notes have a maturity date of 15 July 2024 but may be called, if certain conditions are met, by KCFL from 15 July 2019 and earlier for tax or regulatory reasons. The Capital Notes have a credit rating of BB+ from Standard & Poor’s, reflecting their subordination and loss absorption features.

Interest is scheduled to be paid semi-annually on the Capital Notes.* The Margin and interest rate for the first five years until 15 July 2019 will be set following a bookbuild on Wednesday 14 May 2014 and announced on or before the Opening Date.

The Offer is expected to open on Thursday 15 May 2014 and close on Tuesday 3 June 2014 at 5pm. Interested investors should contact one of the Joint Lead Managers to the offer (listed below) or their usual financial adviser to request a copy of KCFL’s Investment Statement for the Capital Notes.

• Deutsche Craigs Limited 0800 226 263

• Forsyth Barr Limited 0800 367 227

ENDS

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