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Cash And Fixed Interest
"Because the Crown is the issuer of Kiwi Bonds and uses the proceeds of Kiwi Bonds for its general purposes, there are no particular investment risks that are relevant. The only risk you have of not recovering the money you pay for Kiwi Bonds or receiving interest payments is that the Crown could default on its obligations under Kiwi Bonds. This is a most unlikely event. The Crown has never defaulted on its debt. Reflecting the Crown’s creditworthiness, Kiwi Bonds are rated AAA by Standard and Poor’s Ratings Group. Moody’s Investors Service does not rate this type of retail debt. However, Moody’s rates the Government’s wholesale domestic currency debt as Aaa."
Reflecting the reduced risk the interest rate will be slightly lower than other fixed interest investments. No transaction fee is charged to the investor on these investments. They are either purchased from the Reserve Bank directly, or through an intermediary (such as an investment adviser), in which case the intermediary is paid a commission.
For further information, please contact the Reserve Bank on 0800 655 494. The latest rates are available through the NZ Debt Management Office.