A new Earthquake Kiwi Bond being launched by the Government to help fund rebuilding in Christchurch should appeal to philanthropists.
The bond is 4% for four years, similar to a term deposit, and is available today.
Craigs Investment Partners broker Chris Timms said normal Kiwi Bonds were for six months, a year and two years.
"The 4% interest rate won't set the world on fire but it is extremely safe with no additional costs apart from investing.
"If people are interested in contributing to the rebuilding of Christchurch, this will give them the ability to do that. It gives you security, certainty and a little bit of interest," he said.
Finance Minister Bill English said investors could be assured that all money invested would be used to help meet the expected $5.5 billion in direct costs to central Government from the two Canterbury earthquakes.
"The Government is borrowing the bulk of that money in the short-term and the Earthquake Kiwi Bond provides a way for local investors to contribute and help reduce the amount New Zealand needs to borrow overseas," he said.
Earthquake Recovery Minister Gerry Brownlee said the Budget released yesterday established a six-year $5.5 billion earthquake recovery fund.
About $4.8 billion would come from new funding, with about $740 million coming from previously allocated areas of spending.
The fund was in addition to the Earthquake Commission's expected $3 billion for repairing residential property and land damage, as well as costs such as ACC.
The fund was created to ensure transparency for spending on rebuilding greater Christchurch, he said.
The fund also included the Government's financial support package for AMI insurance.
Rebuild appeal.
• Earthquake bond 4% for four years.
• Quake fund of $5.5 billion established.
• Bond intended to appeal to philanthropists
