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)
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 debt securities issued as redeemable shares and qualifying as Tier 2 regulatory capital.
Minimum investment
$10,000
This is the minimum amount you would need to put into this in order to invest.
Closing date
Ongoing
This offer does not have a closing date and is a continuous issue. It's likely you'll be able to invest for the foreseeable future.
Rate
Non-fixed
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.
The details
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.
Investment credit rating
BBB-
(Fitch Ratings)
This is the credit rating for this particular bond or debt security.
Issuer credit rating
BBB+ Stable Outlook
(Fitch Ratings)
This is the credit rating for the organisation issuing the bond or debt security.
Maturity
Fixed Duration
Rate
Non-fixed
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 BKBM 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. If the sum of the BKBM Rate plus the margin is less than 0%, the floating rate will be deemed to be 0% per annum.
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.
Limited Disclosure Document SBS Capital Bonds No.2 23 September 26.pdf
How this investment works, including about the provider, risks, costs and potential returns
PDF, 1.87 MB
Additional disclosure documents
These are more documents from the provider that can contain interesting information.
Noticeof Availabilityof Disclosure Statements SBS Capital Bond No.2.pdf
Notice of Availability of Disclosure Statements - SBS Capital Bond No. 2
PDF, 7.36 KB
Table of Ranking of Debt Securities SBS Capital Bonds No.2.pdf
Table of Ranking of Debt Securities
PDF, 79.52 KB
Terms Sheet Capital Bonds No.2 23 Sept 2026.pdf
Terms Sheet
PDF, 539.38 KB
Announcement of Fixed Interest Rate 01 October 2026.pdf
Announcement of Fixed Interest Rate - 1 October 2026
PDF, 1.18 MB
Additional details
Issuer details
Name
SOUTHLAND BUILDING SOCIETY
Type
Building Society
Industry
Financial/insurance
Website
NZBN
9429043042654
FSP Number
Credit rating
BBB+ Stable Outlook (Fitch Ratings) on 22 Feb 2026
Offer details
Date registered
26 January 2023
Date opened
7 February 2023
Closing date
None
Offer credit rating
BBB- (Fitch Ratings) on 22 February 2026
Continuous issue
Yes
Further payments may be required
No
Restrictions on transfer
Yes
Restrictions on acquisition
No
Convertible product
No
Intending to list
No
Schedule 1 exemption
Yes
FMA exemption
No
Reference numbers
Offer
OFR13463: SBS CAPITAL BONDS NO.2