Generator Bonds are now listed on the NZDX (NZX Debt Market). The stock code is GTR010.

The final interest rate has been set at 8%pa, and Standard & Poor's have issued Generator Bonds with an A- credit rating.

Key dates

Summary of the offer

With a long-term trend of falling interest rates, New Zealand investors are increasingly seeking an opportunity to secure steady income over the medium term.

What are Generator Bonds?

Generator Bonds are simply fixed interest securities offering investors a competitive quarterly return, coupled with one of the most dependable credit risk measures for this type of investment in the world - an S&P A- credit rating.

Changing the risk/return equation

Generator Bonds are designed to have higher returns than other bonds of the same credit rating. As you can see in the chart below, Generator Bonds deliver a better return than the average return you could get from each rated class of bonds currently available.

Standard & Poor’s credit rating

The term "investment grade" is used by financial markets to refer to S&P credit ratings which range from BBB- to AAA. Credit ratings of BB and below are normally referred to as "speculative grade".

Standard & Poor's credit rating - more information

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What is the benefit of the portfolio of debt being issued by 100 different companies, rather than by the usual single company?

Many New Zealanders generate most or all of their investment income from New Zealand sources. You’ve heard the adage about putting all your eggs in one basket. Generator Bonds provide a good opportunity for investors to diversify their income stream outside New Zealand - crucially, this is done without exchange rate risk.

Generator Bonds are diversified across 100 high quality international and domestic companies – each of them with a Standard & Poor’s investment grade rating in their own right and a market capitalisation of $1 billion or more each. The list of companies in the portfolio includes household names such as:

Download an investor brochure

Investments in Generator Bonds are not deposits with or liabilities of Macquarie Bank Limited nor any member of the Macquarie Bank Group and are subject to investment risk, including possible delays in repayment and loss of income and or principal invested. None of Macquarie Bank Limited, Generator Bonds Limited, Macquarie Equities New Zealand Limited, Macquarie New Zealand Limited or any member of the Macquarie Bank Group guarantees the performance of Generator Bonds nor do they guarantee the repayment of the capital from Generator Bonds.

Macquarie Bank Limited is a company incorporated in Australia and authorised under the Banking Act 1958 (Australia) to conduct banking business in Australia. Neither Macquarie Bank Limited nor any member of the Macquarie Bank Group are registered as a registered bank in New Zealand by the Reserve Bank of New Zealand under the Reserve Bank of New Zealand Act 1989 (New Zealand).

*Standard & Poor’s consents to the distribution of the advertisement with the statements containing or referring to the name “Standard and Poor’s” in the form and context in which they are included in this advertisement, and confirms that it has not, before the date of distribution of this advertisement, withdrawn that consent. Standard and Poor’s confirms that neither it, nor any of its employees or officers, are intending to be officers, directors, employees or professional advisers to Generator Bonds Limited.

Neither the credit linked notes nor the Generator Bonds constitute obligations of The Bank of Nova Scotia or its affiliates (collectively, “Scotia”). The Generator Bonds are not sponsored, endorsed, promoted, sold or guaranteed by Scotia and nothing herein shall be construed as constituting a warranty or representation of Scotia as to the advisability or suitability of investing in the Generator Bonds. Apart from this paragraph, Scotia has not been involved in the preparation of this Adviser Flyer and shall in no way be liable for its content.

Application has been made to New Zealand Exchange Limited (NZX) for permission to list Generator Bonds and all the requirements of NZX relating thereto that can be complied with on or before the distribution of this web page have been duly complied with. However, NZX accepts no responsibility for any statement in this web page. Applications to invest in Generator Bonds can only be made on the application form attached to the Offer Document. You should always consult with your investment or other financial adviser to determine whether investment in Generator Bonds is suitable for your particular financial needs, circumstances and or objectives.


	Important Information © 2002-2008 Macquarie Group
	Macquarie Group Limited is not an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia), and Macquarie Group Limited's obligations do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542. Macquarie Bank Limited does not guarantee or otherwise provide assurance in respect of the obligations of Macquarie Group Limited. Neither Macquarie Group Limited nor any member of the Macquarie Group of Companies is registered as a bank in New Zealand under the Reserve Bank of New Zealand Act 1989.

Generator Bonds

8%pa Investment grade quality Generating a better return for New Zealand investors