Bonds

Bonds

We have been issuing bonds since 1999

 

With approximately $1.6 billion of debt listed on the NZX Debt Market Infratil is one of the largest corporate bond issuers in
New Zealand. 

 

  

Following the successful bookbuild process for its offer (Offer) of unsecured, subordinated, repayable, cumulative, interest-bearing capital bonds maturing on 15 June 2057 (Capital Bonds) Infratil has allocated $200,000,000 of Capital Bonds (including $50,000,000 of oversubscriptions). The Offer is now closed.

The Capital Bonds will have a term of 31 years. Infratil may choose to repay some or all of the Capital Bonds early in certain circumstances, including on any Reset Date (6 years after the Issue Date and every 5 years after that).

The initial Interest Rate that will apply until the First Reset Date (15 June 2032) has been set at 5.50% per annum. This is the Minimum Initial Interest Rate.

Infratil may, at its absolute discretion, defer any payment of interest on the Capital Bonds for up to 5 years. If any interest payment is deferred, the unpaid interest will remain owing and will itself accrue interest.

The Capital Bonds are expected to be issued on 15 June 2026 and quoted on the NZX Debt Market on 16 June 2026 under the ticker code IFT380.

The Capital Bonds have an issue credit rating of BBB- from S&P Global Ratings (S&P). The issue credit rating of the Capital Bonds is two notches below Infratil's issuer credit rating of BBB+ from S&P, reflecting their subordination and the potential for interest payments to be deferred.

Details of the Offer are contained in the product disclosure statement (PDS) and the Final Terms Sheet (see below table).

Arranger and Joint Lead Manager:
Bank of New Zealand

Joint Lead Managers:
Craigs Investment Partners Limited
Forsyth Barr Limited

Current bonds

Ticker Face value Coupon type Current coupon* Maturity Term^ Bond terms sheet & series supplement
IFT380 $200,000,000 Resetting coupon1 5.50% 15 June 2057 31y
IFT370 $122,559,333 Fixed 6.16% 16 June 2032 7y
IFT280 $156,279,000 Fixed 3.35% 15 December 2026 7y
IFT310 $102,403,000 Fixed 3.60% 15 December 2027 6.5y
IFT270 $146,249,000 Resetting coupon2 6.78% 15 December 2028 10y
IFT330 $150,000,000 Fixed 6.90% 31 July 2029 6y
IFTHC $123,186,000 Resetting coupon3 5.20% 15 December 2029 10y
IFT320 $115,918,500 Resetting coupon4 5.93% 15 June 2030 8y
IFT360 $121,664,000 Fixed 6.00% 13 December 2030 6y
IFT340 $127,248,000 Fixed 7.08% 15 March 2031 7.5y
IFT350 $204,492,000 Fixed 7.06% 17 December 2031 7.5y
IFTHA $231,916,600 Resetting coupon5 3.90% Perpetual Perpetual
  • per annum except IFTHA Bonds
  • Terms rounded to nearest half-year
  1. Coupon resets on 15 June 2032, with subsequent reset dates every 5 years at the 5Y swap rate plus the margin and step-up
  2. Coupon reset on 15 December 2023 at 5Y swap rate plus 2.50% credit margin
  3. Coupon reset annually on 15 December at 1Y swap rate plus 2.50% credit margin
  4. Coupon reset on 15 June 2026 at 4Y swap rate plus plus 2.00% credit margin
  5. Coupon reset annually on 15 November at 1Y swap rate plus 1.50% credit margin

IFTHA Perpetual Bonds

The IFTHA Perpetual bonds were issued under a standalone offer document and the terms of these bonds are different to Infratil's other bonds. Please refer to the bond documentation included in the Current Bonds table above for more details.

IFTHA Background

At the time of their issue investors were attracted to the IFTHAs given their relatively high initial coupon. Since that time interest rates have typically been at lower levels, which has meant that IFTHAs have traded significantly below their issue price of $1.00. Infratil has previously undertaken a review to ascertain if it is feasible to amend the terms of the IFTHAs. In this process, several barriers were encountered to being able to do this fairly. Ultimately any offer to acquire the IFTHAs above their current trading value or to convert them to a fixed term would result in a material transfer of value from Infratil shareholders to Infratil IFTHA holders.  

More information

Master trust deed

Capital Bond trust deed

Summary of key bond terms (other than IFTHC Bonds)

Buying and selling Infratil bonds

If you would like to purchase Infratil bonds you should contact a Joint Lead Manager (refer to the term sheet of each bond), your financial adviser or any primary market participant for information on the process. You can find a primary market participant by visiting www.nzx.com/services/market-participants.