There are some aspects of this fund which may require extra consideration before deciding to invest.
Schedule 1 exemption
This investment offer has a Schedule 1 exemption, which means there is not as much required to be disclosed about it as others. There will be fewer documents to see. Here's more about Schedule 1.
Exclusion for debt securities issued by a registered bank (clause 21(b) of Schedule 1 of the FMCA)
Convertible financial product
This is an investment that may become changeable, or change, into another kind of investment. Convertibles are usually bonds or preferred shares that can be converted into common stock. They may offer protection against heavy losses, but also typically give up some increases in value.
Ordinary shares in Commonwealth Bank of Australia
Restrictions on transfer
There are rules around transfering in and out of this investment, which may depend on eligibility. For example, overseas investors may not be able to transfer into some New Zealand managed funds. Or there may be restrictions on withdrawals, such as not until age 65 for KiwiSaver funds.
Issuer can withhold payment
In this case, the provider of this investment may not pay investors back straight away. This is important to know and acknowledge as you research investments.
Issuer's description of this product:
ASB Notes 2 are subordinated unsecured convertible notes issued by ASB Bank Limited. ASB Notes 2 may convert into fully paid ordinary shares in Commonwealth Bank of Australia in certain circumstances.
Minimum investment
This is the minimum amount you would need to put into this in order to invest.
Closing date
This is when this offer closes to investors.
Maturity
Rate
Key facts
Provider website
Intending to list
The issuer has indicated that they are intending to list this investment on a public exchange, or that it is already listed. See the listing here: nzx.com
Issuer's industry
Financial/insurance
Credit ratings
Credit ratings can help you understand whether your investment in bonds will pay or if you'll get your money back. They indicate the long-term ability of the issuer to repay its debts. See also the Reserve Bank's primer on credit ratings and a map of the three scales used by the rating agencies.
(Standard & Poor's)
This is the credit rating for this particular bond or debt security.
Issuer credit rating
This is the credit rating for the organisation issuing the bond or debt security.
Maturity
Maturity description
This investment offer finishes on the above date.
Rate
Rate description
The interest rate for the period from the issue date to (but not including) the Call Option Date (15 December 2021) will be the sum of the Margin and the 5 year swap rate (a reference interest rate for an instrument with a 5 year term) on the bookbuild date (2 November 2016). The Margin will be determined on the bookbuild date (2 November 2016) through the Bookbuild and will not change over the term of ASB Notes 2. The Margin and the initial interest rate will be announced via NZX on or before the Opening Date. On and from the Call Option Date (15 December 2021), the interest rate will be the sum of the Margin and the 5 year swap rate on the Call Option Date (15 December 2021). The interest rate that applies from the Call Option Date will be announced via NZX on that date.
Key documents
These are the most important documents that a provider is required to file about this investment.
Product disclosure statement
Before you invest in a product like a fund, you are given a PDS which has essential details about it and the company providing it. Here's more on how to read a PDS.
Product Disclosure Statement.pdf
How this investment works, including about the provider, risks, costs and potential returns
Additional disclosure documents
These are more documents from the provider that can contain interesting information.
Notice of availability of ASB's disclosure statements.pdf
Other material information.pdf
Co-Ordination Agreement.pdf
Constitution of CBA dated November 2008.pdf
Interest Rate Announcement.pdf
Offer Size Increase to $400m.pdf
Additional details
Issuer details
Name
ASB BANK LIMITED
Type
NZ Limited Company
Industry
Financial/insurance
Website
NZBN
9429039435743
FSP Number
Credit rating
Not provided
Offer details
Date registered
25 October 2016
Date opened
03 November 2016
Closing date
25 November 2016
Offer credit rating
BBB+ (Standard & Poor's) on 25 October 2016
Continuous issue
No
Further payments may be required
No
Restrictions on transfer
Yes
Issuer can withhold, reduce, or delay payment
Yes
Convertible product
Yes: Ordinary shares in Commonwealth Bank of Australia
Intending to list
Yes : nzx.com
Schedule 1 exemption
Yes: Exclusion for debt securities issued by a registered bank (clause 21(b) of Schedule 1 of the FMCA)
FMA exemption
No
Reference numbers
Offer
OFR11042: ASB SUBORDINATED NOTES 2
Next steps
Want to know more about this investment or how it compares to others? Have a look at its peers.
Product disclosure statement
Take a deeper dive into the PDS, which has essential details about this offer and the company providing it. Here's more on how to read a PDS.
Market listing
The provider has indicated they are intending to list this investment, or that it is already listed, on a public securities market. Here's where to find the market listing: nzx.com
Getting investment advice
Good advice is gold. Everyone can benefit from expert advice, provided the adviser has your interests at heart. Here's how to find one and key questions to ask.
Interested in investing in this offer? Visit the provider's website. asb.co.nz