Earthquake Kiwi Bond to help fund recovery

The Government will launch a new Earthquake Kiwi Bond to help fund the recovery in Christchurch and provide investors with a new savings option, Finance Minister Bill English says.

The new four-year bond is similar to a term deposit and is available to New Zealand residents from today.

“This is a great opportunity for Kiwi investors who want to help fund the Government's contribution to the multi-billion dollar recovery in Canterbury, while still getting a solid return on their money,” Mr English says.

“The bond will be like other Kiwi Bonds, but investors can be assured that all money invested will be used to help meet the expected $5.5 billion in direct costs to central Government from the two Canterbury earthquakes.

“The Government is borrowing the bulk of that money in the short-term and the Earthquake Kiwi Bond provides a way for local investors to contribute and help reduce the amount New Zealand needs to borrow overseas.”

The new bond will be issued by the New Zealand Debt Management Office as part of its debt issuance programme.

The bonds will pay interest based on wholesale government bond rates, with the initial interest rate set at 4.0 per cent.

To purchase the Earthquake Kiwi Bond people should talk to their investment advisor or for more information visit www.nzdmo.govt.nz