Frequently asked questions about UDC investments.
Final Redemption FAQs
What has previously been announced about the final close of UDC Investments?
UDC stopped offering new UDC Secured Investments early this year. In July 2019 we decided to exercise our right to redeem all remaining UDC Secured Investments and wind up our debenture programme on 14 October 2019.
Before UDC Secured Investments were redeemed, UDC sent investors an Election Notice asking them to choose what would happen to their UDC Secured Investment(s) on redemption. Investors could choose to have their UDC investment either converted into an equivalent ANZ investment, or repaid directly to their nominated bank account.
If no option was selected in relation to a UDC Secured Investment (i.e. if a validly completed Election Notice was not returned by the response date) that investment was converted into an equivalent ANZ Bank investment following the response date and prior to 11 October 2019.
For investors who chose to have their investment repaid, repayments were made to the investor’s nominated bank account on 14 October 2019 (unless an earlier repayment date was requested).
Why has UDC closed the debenture programme?
UDC has been reviewing its funding structures to ensure that is has the best funding options to support its growth plans, and has determined that the UDC debenture programme may not offer the flexibility that UDC needs for these plans.
What are the equivalent ANZ investments?
The equivalent ANZ investments are products issued by ANZ Bank New Zealand Limited (ANZ) that ANZ considers to have materially the same terms as the relevant UDC Secured Investments.
For questions about the equivalent ANZ Investments, contact ANZ on 0800 269 296 (International +64 4 470 3142).
What if my investment matured before the final redemption date?
If your Term Investment matured and was not repaid to you prior to 14 October 2019 (for example if you did not return repayment instructions or a validly completed Election Notice) it would have earned the UDC On Demand interest rate of 1% p.a. from the maturity date until it was converted to an ANZ equivalent product (an ANZ Online call account in this instance).
If I chose repayment, what amount was repaid on the final redemption date?
If you chose repayment, the amount repaid to you (the "Cash Redemption Amount") on 14 October will have been the remaining principal amount of your Secured Investment as at the final redemption date, together with any accrued but unpaid interest, less any withholding tax or other deductions applicable to such amount (in each case as at the final redemption date). A final Statement will have been sent to you following the repayment of your UDC investment.
If I chose conversion to ANZ, what amount was converted?
If your UDC Secured Investments were converted, the equivalent ANZ investment issued to you by ANZ will have a principal amount equal to the “Cash Redemption Amount”. This is the remaining principal amount of your UDC Secured Investment as at the date of conversion, together with any accrued but unpaid interest, less any withholding tax or other deductions applicable to such amount (in each case as at the date of conversion).
Where can I find out more about the equivalent ANZ investments?
Full details were provided in the ANZ Flyer enclosed in the Election Notice and with the ANZ welcome pack. If you have further questions about your equivalent ANZ Investments, please contact ANZ on 0800 269 296 (International +64 4 470 3142).
How will I know when my UDC investment was converted to an ANZ equivalent investment?
Conversions to ANZ took place after receipt of your Election Notice or soon after the Election Notice response date. Once conversion occurred, ANZ sent you a confirmation pack notifying you of the date on which the conversion occurred and the details of your new ANZ investment.
Will I receive any further communication from UDC?
After the final UDC Statement which was sent to you immediately following the conversion or repayment of your investment, the last communication from UDC will be Withholding Tax Certificates which have been posted during the month of December 2019. These certificates will show the interest earned for the portion of the 2020 tax year your investment was held at UDC. It is important you retain this certificate for your records.
Can I still view my investments online?
UDC Live will be available for you view your previous Term Investments online up until 20 December 2019. Once a Call Account is closed, past transactions are unable to be viewed on UDC Live. Paper based UDC Statements will be sent to all investors soon after the conversion to ANZ or repayment of their investment.
Is my interest taxed?
Interest earned on UDC Secured Investments is taxable. Tax or Levy is deducted before interest is paid or compounded.
What is an Approved Issuer Levy (AIL)?
If you are a non-resident, you can agree to have deducted the cost of the Approved Issuer Levy (AIL). In this case we will deduct the AIL from the interest to be paid or credited to you and non-resident withholding tax will not be deducted.
What is an On Demand Rate?
The On Demand Rate is the interest rate applied to matured Term Investments, and to an investment when it falls below the minimum required balance. The On Demand Rate is lower than the call interest rate provided to UDC Call Investors (our On Demand Rate during 2019 was 1% p.a.).