BNZ launches Perpetual Preference Share offer

Exchange announcement 29 May 2023 BNZ launches perpetual preference share offer Bank of New Zealand (BNZ) announced today that it is making an offer of up to NZ$250 million of perpetual preference shares (PPS) to New Zealand investors. BNZ has the ability to accept unlimited oversubscriptions at its discretion. The offer opens today, 29 May 2023, and is expected to close at 12:00pm on 2 June 2023. The PPS will constitute Additional Tier 1 Capital for BNZ's regulatory capital requirements. The PPS will not have a fixed term and will remain on issue indefinitely if not redeemed by BNZ. If certain conditions are met, BNZ may redeem the PPS on the first optional redemption date (14 June 2029) and on each quarterly scheduled distribution payment date thereafter, or at any time for tax or regulatory reasons. The indicative margin range for the PPS is 3.00% - 3.25% per annum. The actual margin (which may be above or below the indicative margin range) and initial distribution rate will be set following a bookbuild process on 2 June 2023 and will be announced by BNZ via NZX shortly thereafter. The distribution rate will be a fixed rate for the first 6 years until the first optional redemption date (14 June 2029), after which it will change to a floating rate that resets at quarterly intervals. Distributions are expected to comprise a cash amount and imputation credits. Distributions on the PPS are scheduled to be paid quarterly but are discretionary and will not be paid if certain conditions are not met. If a distribution is not paid for any reason, BNZ is under no obligation to pay that distribution at a later date. The PPS are expected to be issued on 14 June 2023. Investors can register their interest by contacting any of the Joint Lead Managers (JLMs) or their usual financial advice provider. Copies of the limited disclosure document (LDD), BNZ's investor presentation and the indicative terms sheet are available from the JLMs or at www.bnz.co.nz/pps. There is no public pool for the offer, with all of the PPS being reserved for clients of the JLMs, NZX Participants and other approved financial intermediaries. Details of the offer and the PPS are contained in the LDD, available on the online Disclose Register maintained by the Companies Office (www.discloseregister.companiesoffice.govt.nz/ offer number OFR13514). Ends End CA:00412162 For:BNZ Type:OFFER Time:2023-05-29 09:36:14