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.

The offer is made in reliance on Clause 21(b) of Schedule 1 of the FMC Act (offer of debt securities by a registered bank).

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:

The Notes are unsecured subordinated notes and are issued by Heartland Bank Limited under a deed poll dated 11 April 2023.

Minimum investment

$5,000

This is the minimum amount you would need to put into this in order to invest.

Closing date

21 Apr 2023

This is when this offer closes to investors.

Maturity

28 Apr 2033

This investment offer finishes on the above date.

Maturity details

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.

Rate details

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.

Investment credit rating

BB+
(Fitch Ratings)

This is the credit rating for this particular bond or debt security.

Issuer credit rating

Not provided

This is the credit rating for the organisation issuing the bond or debt security.

Maturity

28 April 2033

Maturity description

This investment offer finishes on the above date.

Rate

Non-fixed

Rate calculation description

Fixed interest rate:
The interest rate for the first 5 years until the First Optional Redemption Date is 7.51% per annum, being the sum of the Swap Rate (a reference rate for a 5 year period) on the Rate Set Date plus the Issue Margin.

Floating interest rate:
The interest rate from (and including) the First Optional Redemption Date will be a floating rate which will be reset quarterly to be equal to the sum of the applicable 3 Month Bank Bill Rate (a benchmark interest rate for a 3 month period) plus the Issue Margin.

Issue Margin:
The Issue Margin is 3.20% per annum. The Issue Margin will not change.

Key documents

These are the most important documents that a provider is required to file about this investment.

Additional details

Issuer details

Name

HEARTLAND BANK LIMITED

Type

NZ Limited Company

Industry

Financial/insurance

Website

NZBN

Credit rating

Not provided

Offer details

Date registered

11 April 2023

Date opened

17 April 2023

Closing date

21 April 2023

Offer credit rating

BB+ (Fitch Ratings) on 11 April 2023

Continuous issue

No

Further payments may be required

Yes

Restrictions on transfer

No

Issuer can withhold, reduce, or delay payment

Yes

Convertible product

No

Intending to list

Yes : nzx.com

Schedule 1 exemption

Yes: The offer is made in reliance on Clause 21(b) of Schedule 1 of the FMC Act (offer of debt securities by a registered bank).

FMA exemption

No

Reference numbers

Offer

OFR13495: OFFER OF UNSECURED SUBORDINATED NOTES BY HEARTLAND BANK LIMITED

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. heartland.co.nz