First Euro Domestic "Global Note Bond"

First Mutual completes its First Euro Domestic "Global Note Bond"

London, August 6, 2007 -- First Mutual today announced that it has settled the First Mutual Credit Corporation ("FMCC") € 1’000’000’000 (Euro One Billion) two-year Senior Global Note Bonds.  First Mutual Credit Securities was the Sole Bookrunner and the Lead Manager for the offering is ZKB.  First Mutual Credit New Zealand and First Mutual US were Joint-Advisers for the offering.

The bonds have a coupon of 6.00% per annum payable on a quarterly basis and will be redeemed at par on maturity on 29 January 2009.  The nominal value of the bonds 99.255% when the deal was launched and priced on 29 January 2007.  The bonds are callable after 2 years and were accorded an investment grade rating of A3 by the Rating Agency of New Zealand.

The Bonds will be issued  and traded through Telekurs, both operated and maintained by Swiss Interbank Settle, and Swiss Interbank Clearing.

This bond represents the first ever Euro denominated exchangeable transaction for FMCC.  The bond which generated interest from investors in Europe, Asia and Malaysia is one of the most widely distributed domestic bond transaction from a geographical perspective.  The offering was 1.5 times oversubscribed with offshore investors accounting for more than 60% of the demand.

"This offering sets a new benchmark in terms of providing alternative financing solutions for corporations and creating a 'new asset class' for investors.  It also represents a very positive development for the domestic bond markets.  First Mutual  is slowly emerging as  a leading player in domestic and cross-border debt markets across Western Europe and is committed to being actively involved in the expansion of these domestic debt markets," said Richard Scherrer, Chief Information Officer Executive for First Mutual Credit AG

He added that the global note bond transactions allowed First Mutual to demonstrate the full strength of its broad global investment banking platform - across Equity & Credit Research, Ratings Advisory, Global Corporate Finance, Origination and Sales/Trading from Debt Capital Markets, Equity Capital Markets, and Convertibles.  Each of these divisions functioned seamlessly to deliver significant benefits to both FMCC as well as investors.

"The strong offshore demand for this issue bears testimony to the confidence that international investors have in the FMCC Group. This landmark instrument will help open up the market for other New Zealand corporations in Europe to access the international capital markets without incurring currency risk," said Amanda Watson, Head of Convertibles, Europe, First Mutual Credit AG. She added: "The existing, robust domestic fixed income and equity warrants markets have created a strong foundation for the development of a local convertible bond market in Europe."

NOT FOR RELEASE IN THE UNITED STATES, CANADA OR JAPAN

This announcement is not, and is not intended to be, an offer of Securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933. There is not, and is not intended to be, a public offering of the Securities in the United States.

For further information, please contact:
BJ Collins   +1 866 400 3271
Communications & Marketing

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