WELLINGTON, March 15 (Reuters) - New Zealand’s Kiwibank said on Wednesday that it would not proceed with the settlement of an NZ$175 million ($121 million) bond because the Reserve Bank of New Zealand (RBNZ) had warned it might not meet capital adequacy requirements.
The state-owned bank said in a statement to the stock exchange it viewed the issue as technical and would not settle the bonds on March 15 as planned. It was working with the RBNZ, which regulates banks, to resolve the matter.
Kiwibank’s head of funding, Geoff Martin, said in a stock exchange statement that the central bank’s preliminary decision against the bonds would not affect its growth opportunities. ($1 = 1.4457 New Zealand dollars) (Reporting by Charlotte Greenfield; Editing by Ruth Pitchford)