09 July 2012 7:01am

Retail investors in New Zealand have found the terms of two long-term debt issues from Westpac a little hard to take, with the bank selling less debt than it hoped in an offer that closed late last week.

Westpac New Zealand (rated AA- by S&P) returned to the NZ retail market for the second time this year, hoping to raise up to NZ$400 million for five years and up to NZ$500 million for seven years.

While the bank came close to its five-year target, raising NZ$385 million, it fell well short of its seven-year target, raising only NZ$235 million. 

It is...