Shareholders chip in
Kiwibank has had to go to its new shareholders for more money.
Monday, 10 April 2017
Just six months after its partial sale, the bank has had to tap NZ Post, the NZ Super Fund and ACC for another $247 million of common equity, effective today.
It follows concerns from the Reserve Bank that the bank’s capital notes did not comply with its capital adequacy roles.
“Shareholders will fund proportionate to their existing shareholdings, reflecting recent announcements by shareholders that Kiwibank’s capital ratios will be maintained should the Reserve Bank determine that the convertible capital instruments are not fully compliant,” a spokesman said.
“Kiwibank remains of the strong view that existing convertible capital instruments are compliant and is working with the Reserve Bank of New Zealand to resolve this matter.”
The NZ Super Fund put out a statement, saying that the validity of Kiwibank’s capital was part of its due diligence before it bought shares.
NZ Post sold 47% of Kiwibank in October for $494m.
Comments from our readers
No comments yet
Sign In to add your comment
Weekly Updates including news and commentary
Today's Best Bank Rates
Today's Top 5 Deposit Rates
Find a Rate
Cash PIE Rates
21 June 2017
6 June 2017
4 May 2017
10 April 2017
Disclaimer - Every possible effort has been made to keep the information in the tables and on this site as accurate as possible, however, neither the publisher, Tarawera Publishing, nor anyone engaged to compile the rates and this site accept any liability for inaccuracies or any loss suffered as a result. It is strongly advised that readers check loan details with providers. The full terms and conditions of this site can be found here.
© Copyright 1997-2017. Tarawera Publishing Ltd. All Rights Reserved.