Kiwi Bond

AAA

DEFINITION of 'Kiwi Bond'

Retail stock offered directly to the public and available only to New Zealand residents. Application forms and investment statements are available from the new Zealand Debt Management Office (NZDMO) Registry, as well as some registered banks, NZX firms, NZX brokers, chartered accountant, solicitors, investment advisors and investment brokers.

INVESTOPEDIA EXPLAINS 'Kiwi Bond'

New Zealanders are often referred to as Kiwis. Kiwi bonds are denominated in new Zealand dollars, with a fixed interest rate that is paid quarterly in arrears. Kiwi bonds are redeemable on maturity or at the option of the bondholder and are issued in six-month, one-year and two-year maturities. The minimum investment is $1,000 New Zealand dollars, with a maximum investment of $500,000 on any single issue. Interest rates for Kiwi bonds are set periodically by the New Zealand Debt Management Office (NZDMO) based on moving averages of domestic wholesale rates.

RELATED TERMS
  1. Maintenance Bond

    A type of surety bond purchased by a contractor that protects ...
  2. NZD (New Zealand Dollar)

    The currency abbreviation or currency symbol for the New Zealand ...
  3. Reserve Bank Of New Zealand

    The Reserve Bank of New Zealand is New Zealand's central bank ...
  4. International Bond

    Debt investments that are issued in a country by a non-domestic ...
  5. Bond

    A debt investment in which an investor loans money to an entity ...
  6. Kiwi

    A slang term for the New Zealand dollar (NZD). It derives its ...
Related Articles
  1. Investing Beyond Your Borders
    Insurance

    Investing Beyond Your Borders

  2. Introduction To Remittances
    Economics

    Introduction To Remittances

  3. How Globalization Affects Developed ...
    Fundamental Analysis

    How Globalization Affects Developed ...

  4. How Countries Deal With Debt
    Credit & Loans

    How Countries Deal With Debt

comments powered by Disqus
Hot Definitions
  1. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  2. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  3. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  4. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  5. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  6. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
Trading Center