Kiwibank confirmed on May 5 that it will proceed with the issue of a new tier-two security via a special-purpose vehicle (SPV), Kiwi Capital Funding. The transaction is for a volume of up to NZ$100 million (US$86.7 million) and will be Kiwibank's second issue of Basel III-compliant tier-two notes and the first with conversion to equity, rather than write-off, as its loss-absorbency mechanism.