New Zealand-based Heartland Bank Ltd. plans to issue up to A$20 million of subordinated unsecured convertible notes.

The bonds will be issued via a private placement to certain institutional investors, according to a March 31 release.

In the event of a nonviability trigger, the notes are required to be converted into fully paid ordinary shares of the bank.

As of March 30, US$1 was equivalent to A$1.30.