12 May 2010 - LOCALLY owned Bank South Pacific raised K23.5 million from an issue of convertible notes t o investors in Fiji, including its own staff.
The notes issued at $F5.25 a note were made through BSP's wholly owned Fiji subsidiary BSP Convertible Notes Limited.
BSP has further plans to list the notes on the South Pacific Stock Exchange and application has been made. The notes attract a half yearly coupon of 7 per cent and at maturity on April 20, 2013 will convert to Fiji class shares at a ratio of 10 shares for one note. The Fiji class shares will then be listed on the South Pacific Stock Exchange.
Chairman Noreo Beangke said that the issue was an outstanding success in the current climate and reflected the confidence that the Fiji market placed on BSP as a truly regional bank. "The issue was for a minimum subscription of $F5 million and the result was well in excess of that amount," Mr Beangke said.
BSP managing director Ian Clyne said the issue was an important transaction for BSP and the first public cross border issue of equity in the Pacific.
He explained that this type of issue was reasonable common in other parts of the developed world, more notably in New Zealand and Australia.
"However, it is the first for Pacific nations and is an important milestone and historic transaction in capital markets for this region," Mr Clyne said.
The issue required close consultation by BSP with the Bank of Papua New Guinea and the Reserve Bank of Fiji.
PNG Post Courier 05-12-10
