RBNZ affirms view that Kiwibank convertible bonds don't meet capital adequacy rules

Tue, 30 May 2017

By Jonathan Underhill May 30 (BusinessDesk) - The Reserve Bank has affirmed its view in March that two bonds issued by state-owned Kiwibank don't qualify as regulatory capital under the Capital Adequacy Framework. The ruling covers $100 million Tier 2 convertible subordinated bond issued on in June 2014 and $150 million of Additional Tier 1 perpetual bonds issued by Kiwibank subsidiary Kiwi Capital Funding Ltd (KCFL) in May 2015. The lender said that while the RBNZ had previously issued "non-objection" letters in relation to the bonds, it...

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