BSP notes issue in Fiji nets F$16mil

BANK South Pacific (BSP) has confirmed that it had raised F$16.085 million (K22.83) million) from an issue of convertible notes to certain investors in Fiji including employees of BSP Fiji.
The issue of convertible notes was made through the bank’s wholly-owned   Fiji subsidiary BSP Convertible Notes Ltd  and was closed 5pm on April 30.
Port Moresby Stock Exchange (POMSoX) yesterday announced the notes were being issued at F$5.25 (K7.43) per note.
Application has been made for the notes to be listed on the South Pacific Stock Exchange (SPSE).
The notes attracted a half yearly coupon of 7% and at maturity on April 20, 2013 will convert to Fiji class shares at the ratio of 10 shares for one note.
The Fiji class shares will then be listed on SPSE.
BSP chairman Noreo Beangke said 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 F$5 million (K7.14) and the result is well in excess of that mount.
BSP managing director Ian Clyne agreed and said this issue was important transaction for BSP and the first public cross boarder issue of equity in the Pacific.
Clyne explained this type of issue was reasonably common in other parts of the developed worlds, more notably between New Zealand and Australia.
However, he said: “It is a first for the Pacific nations and is an important milestone and historic transaction in capital market for this region.”