Vector Limited announced today that the interest rate on its Capital Bonds (VCT040) for the period from 15 June 2012 until the next election date on 15 June 2017 will be 7.00%. The ticker for the Capital Bonds will change to “VCT070” from 15 June 2012.
Under the new conditions of the Capital Bonds, the interest rate was set at or about 3pm on 14 June 2012 as the higher of 7.00% and the 5 year swap rate plus the issue margin of 2.95%.
The 5 year swap rate at or about 3pm on 14 June 2012 was 3.06%. Therefore, the interest rate on the Capital Bonds has been set at 7.00%.