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)
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:
Unsecured, subordinated, loss-absorbing, debt securities issued as redeemable shares and qualifying as Tier 2 regulatory capital.
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
This investment offer does not have a single set rate. This may mean that the rate is variable or that there are multiple rates available.
Key facts
Provider website
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.
(Fitch Ratings)
This is the credit rating for this particular bond or debt security.
Issuer credit rating
(Fitch Ratings)
This is the credit rating for the organisation issuing the bond or debt security.
Maturity
Maturity description
This investment offer finishes after the above time period.
Rate
Rate calculation description
The interest rate will be fixed for the first five years. The fixed interest rate which is applicable will be the fixed interest rate announced by SBS Bank prior to and applying on, the relevant Issue Date. The applicable fixed interest rate will be as advertised by SBS Bank and acknowledged by each subscriber before issue. After the fifth anniversary of the issue date, the interest rate will be floating and will (a) be set by SBS Bank and advised to you; (b) apply from the first day of each interest period (3 months); and (c) be the sum of the three-month bank bill rate (a benchmark interest rate for a term of three months) plus a margin which will be set by SBS Bank and notified to you prior to your Issue 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.
SBS Bank - Limited Disclosure Document for the SBS Capital Bond.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.
SBS Bank - SBS Capital Bond - Terms Sheet.pdf
SBS Bank - Notice of Availability of Disclosure Statements.pdf
Announcement of Fixed Interest Rate - 01 February 2019.pdf
SBS Bank - Capital Bond Media Release.pdf
SBS Bank - Table of Ranking of Debt Securities (May 2018).pdf
SBS Bank - Table of Ranking of Debt Securities (June 2018).pdf
SBS Bank - Table of Ranking of Debt Securities (September 2018).pdf
SBS Bank - Table of Ranking of Debt Securities (September 2018 - Updated 6 December 2018).pdf
SBS Bank - Table of Ranking of Debt Securities (December 18).pdf
Announcement of Fixed Interest Rate - 01 March 2019.pdf
Announcement of Fixed Interest Rate - 01 March 2019.pdf
Announcement of Fixed Interest Rate - 01 April 2019.pdf
Announcement of Fixed Interest Rate - 01 May 2019.pdf
Announcement of Fixed Interest Rate - 01 June 2019.pdf
SBS Bank - Table of Ranking of Debt Securities (March 2019).pdf
Announcement of Fixed Interest Rate - 01 July 2019.pdf
Announcement of Fixed Interest Rate - 01 August 2019.pdf
SBS Bank - Table of Ranking of Debt Securities (June 2019).pdf
Announcement of Fixed Interest Rate - 01 September 2019.pdf
Announcement of Fixed Interest Rate - 01 October 2019.pdf
Additional details
Issuer details
Name
SOUTHLAND BUILDING SOCIETY
Type
Building Society
Industry
Financial/insurance
Website
NZBN
9429043042654
FSP Number
Credit rating
BBB Outlook Stable (Fitch Ratings) on 30 August 2017
Offer details
Date registered
29 September 2017
Date opened
02 October 2017
Closing date
18 October 2019
Offer credit rating
BBB- (Fitch Ratings) on 28 September 2017
Continuous issue
Yes
Further payments may be required
No
Restrictions on transfer
Yes
Issuer can withhold, reduce, or delay payment
Yes
Convertible product
No
Intending to list
No
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
OFR11977: SBS CAPITAL BOND
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.
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. sbsbank.co.nz