Low retail supply supports Kiwibank's new instrument success

Kiwibank's issue of the first tier two instrument in the New Zealand market to contain explicit loss-absorbency language achieved strong investor support despite the securities' sub-investment grade rating, the issuer and its arranger say. The deal's structure made for an overwhelmingly retail buyer base, but in a market which continues to feature limited retail supply Kiwibank believes further subordinated bank issuance could find a welcoming home.