By Phil Boeyen, ShareChat Business News Editor
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Monday 19th November 2001 |
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The bonds, introduced to the market on Monday, will be available through the bank's retail branch network and to institutional investors - the first time such an issue has been offered simultaneously to wholesale and retail markets.
Customers can invest a minimum of $10,000, and more in multiples of $1,000, for three years at a fixed interest rate of 5.50% p.a. Interest is paid every six months.
Westpac spokesperson, Mark Butcher, says in the current climate the bonds provide an easily accessible, flexible alternative for investors.
"While the interest rate is favourable compared with a term investment, customers can exit or add to their investment at any time during the three years on the terms of the issue.
"At the same time, the bonds, which are unsecured senior ranking debt, offer better security compared with other options such as capital notes."
Mr Butcher says the bank is expecting high demand for the bonds.
"We're confident this offer will help satisfy investors' demand for greater choice in the retail investment market. We also expect a strong secondary market to develop, with customers able to buy and sell bonds after the initial offer period."
The bank says it will measure the success of the first retail issue and will look to bring further issues to the market, from both itself and other borrowers.
The bonds are rated AA- by rating agency Standard & Poors.
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