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 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
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.
(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 for the first five and a half years until the First Optional Redemption Date (22 August 2029) is 7.62% per annum. The interest rate from (and including) the First Optional Redemption Date will be a floating rate which will be reset quarterly, will apply from the first day of each Interest Period and will be equal to the sum of the 3 Month Bank Bill Rate (applying at the time the Interest rate is set) and the Issue Margin. The Issue Margin in 3.00% per annum and will not change throughout the term.
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.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 - Indicative Terms Sheet.pdf
SBS Bank - Investor Presentation.pdf
SBS Bank - Other Material information.pdf
SBS Bank - Indicative Terms Sheet.pdf
SBS Bank - Final Terms Sheet.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 01 August 2023
Offer details
Date registered
05 February 2024
Date opened
12 February 2024
Closing date
15 February 2024
Offer credit rating
BB+ (Fitch Ratings) on 05 February 2024
Continuous issue
No
Further payments may be required
No
Restrictions on transfer
Yes
Issuer can withhold, reduce, or delay payment
Yes
Convertible product
No
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
OFR13709: OFFER OF UNSECURED SUBORDINATED BONDS BY SBS BANK
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. sbsbank.co.nz