Infratil Infrastructure Bond Offer Opens

 

Infratil Limited (“Infratil”) announces that its offer of unsecured, unsubordinated fixed rate Infrastructure Bonds to New Zealand retail and institutional investors is now open.

Infratil is offering up to $50 million of unsecured, unsubordinated fixed rate Infrastructure Bonds which are to mature on 15 March 2026 (“Bonds”), with the option to accept up to $50 million of oversubscriptions at Infratil’s discretion. The Bonds will form part of the same series as Infratil’s existing 3.35% per annum fixed rate bonds issued on 16 December 2019, 16 January 2020 and 14 February 2020 (“IFT300”). The key terms of the offer are contained in the Terms Sheet, a copy of which is attached.

The Issue Price for the Bonds will be $1.01694 per Bond for Bonds issued on 15 December 2020 and $1.01619 for Bonds issued on 15 March 2021, which has been determined using an Issue Yield of 3.00% p.a.. The coupon rate for the Bonds (payable on the Face Value of $1.00, not the Issue Price) is fixed at 3.35% p.a. for the term of the Bonds.
The offer is being made as an offer of debt securities of the same class as existing quoted debt securities pursuant to the Financial Markets Conduct Act 2013. The notice required by the Financial Markets Conduct Regulations 2014 has been provided to NZX. The Bonds will be quoted on the NZX Debt Market.
Details on how to apply for the Bonds are set out in the Terms Sheet. The offer is now open, and is due to close on 10 March 2021. Infratil may elect to close the offer earlier.
Interested investors should contact their broker or one of the managers of the offer (outlined below) for more details.

ANZ Bank New Zealand Limited 0800 269 476
Bank of New Zealand 0800 284 017
Forsyth Barr Limited 0800 367 227 www.forsythbarr.co.nz
Hobson Wealth Partners Limited 0800 742 737
Jarden Securities Limited 0800 005 678 www.jarden.co.nz
Westpac Banking Corporation 0800 942 822
(ABN 33 007 457 141) (acting through its New Zealand branch)

Further information is available on www.infratil.com/for-investors/bonds/ or by contacting Aaron Queree (Group Treasurer, Infratil) on 04 473 3663.

Infratil Infrastructure Bond Offer Opens (PDF 138 KB)

Cleansing Notice (PDF 135 KB)

IFT300 Terms Sheet - Subsequent offer (PDF 3.8 KB)

Infratil Infrastructure Bonds

The terms sheets applicable to Infratil’s bonds are available below.

All Infratil Infrastructure Bonds are listed on the NZDX. Most trade regularly, but because many investors hold to maturity at times trading can be thin and prices volatile, even though several banks and brokers trade the Bonds.
Infratil’s Annual Report contains a section which deals with Infratil’s Bonds, including a summary of the relevant year’s secondary market activity 

With regards to the key coupon and maturity features, the Bonds fall into three distinct categories:

1. Fixed Maturity and Fixed Coupon. Most of the Bonds have a specified maturity date and a fixed quarterly coupon.

2. Fixed Maturity and Floating Coupon. The Bond maturing December 2029 will have its coupon rate reset each 15th December from 2020 to provide a one year return of 2.5%pa. over the one year Bank Rate * as at that day. The Bond maturing December 2028 will have its coupon rate reset once on 15 December 2023 to provide a return of 2.5%pa. over the then five year Bank Rate *

3. No Maturity and Floating Coupon. One Bond is a perpetual security meaning that it has no maturity date. Each 15th November its coupon rate is rest to provide a one year return of 1.5%pa. over the one year Bank Rate * as at that day. The special features of this bond are set out in a report copied below.

* The Bank Rate is the average of the interbank interest rate swap rates quoted that day for quarterly interest rate swaps of the relevant term.

IFT190 15 Jun 2022
Offer Opened

29 Apr 2013

Offer Closed

28 Jun 2013

Bond Maturity

15 Jun 2022

Face Value on Issue

$93,696,000

Coupon (all payable quarterly)

6.85% per annum

IFT210 15 Sep 2023
Offer Opened

01 Oct 2015

Offer Closed

15 Nov 2015

Bond Maturity

15 Sep 2023

Face Value on Issue

$122,103,683

Coupon (all payable quarterly)

5.25%

IFT220 15 Jun 2021
Offer Opened

20 May 2016

Offer Closed

10 Jun 2016

Bond Maturity

15 Jun 2021

Face Value on Issue

$93,883,000

Coupon (all payable quarterly)

4.90%

IFT230 15 Jun 2024
Offer Opened

20 May 2016

Offer Closed

10 Jun 2016

Bond Maturity

15 Jun 2024

Face Value on Issue

$56,117,000

Coupon (all payable quarterly)

5.50%

IFT240 15 Dec 2022
Offer Opened

18 May 2017

Offer Closed

12 Jun 2017

Bond Maturity

15 Dec 2022

Face Value on Issue

$100,000,000

Coupon (all payable quarterly)

5.65% per annum

IFT250 15 Jun 2025
Offer Opened

18 May 2017

Offer Closed

23 Jun 2017

Bond Maturity

15 Jun 2025

Face Value on Issue

$43,413,442

Coupon (all payable quarterly)

6.15%

IFT260 15 Dec 2024
Offer Opened

01 Oct 2018

Offer Closed

31 Oct 2018

Bond Maturity

15 Dec 2024

Face Value on Issue

$100,000,000

Coupon (all payable quarterly)

4.75%

IFT270 15 Dec 2028
Offer Opened

01 Oct 2018

Offer Closed

31 Oct 2018

Bond Maturity

15 Dec 2028

Face Value on Issue

$146,249,000

Coupon (all payable quarterly)

4.85% rate reset after 5 years

IFT280 15 Dec 2026
Offer Opened

20 Aug 2019

Offer Closed

20 Sep 2019

Bond Maturity

15 Dec 2026

Face Value on Issue

$156,279,000

Coupon (all payable quarterly)

3.35%

IFT300 15 March 2026 Initial Offer
Offer Opened

22 Oct 2019

Offer Closed

13 Feb 2020

Bond Maturity

15 Mar 2026

Face Value on Issue

$36,975,800

Coupon (all payable quarterly)

3.35%

IFTHC 15 December 2029
Offer Opened

20 Aug 2019

Offer Closed

13 Nov 2019

Bond Maturity

15 Dec 2029

Face Value on Issue

$123,186,000

Coupon (all payable quarterly)

3.50% until 15 Dec 2020 rate reset on 15 December 2020 and annually thereafter

IFTHA Perpetual
Offer Opened

17 Nov 2006

Offer Closed

30 Apr 2007

Bond Maturity

Face Value on Issue

$231,900,000

Coupon (all payable quarterly)

The coupon rate is reset every 15 November at 1.5% over the then one year Bank Base Rate

Infrastructure Bonds Trust Deed

Infratil Infrastructure Bonds Amendment and Restatement Trust Deed effective from 11 September 2015

Infratil Trust Deed Amendments

Infratil Infrastructure Bonds Trust Deed 11 November 1999
Infratil Infrastructure Bonds Trust Deed Amendment dated 14 August 2003
Infratil Infrastructure Bonds Second Amending Trust Deed 15 November 2006
Infratil Infrastructure Bonds Third Amending Trust Deed 27 September 2012
Infratil Infrastructure Bonds Trust Deed 17 May 2017

The Trustee is Trustees Executors Limited, Level 5, 10 Customhouse Quay, Wellington.
Telephone : 04 495 0999

The terms of Infratil’s Bonds are set out in their individual prospectus and trust deeds (and summarised in the relevant Investment Statement). Each six months Infratil provides the Trustee with a certificate signed by directors confirming its position relative to the Bond covenants and with regards to general compliance with Bond terms. Infratil has always recorded conformity. Bondholders are welcome to contact the Trustee to confirm Infratil’s compliance.

Perpetual Infratil Infrastructure Bonds PiiB

Outlined below is a detailed explanation of the PiiB. These are an unusual debt instrument as the coupon rate is reset each year and there is no maturity date. The explanation covers the history of the PiiBs and factors investors should consider when buying or selling them.

Perpetual Infratil Infrastructure Bonds March 2018 (PDF)

Trustpower Wellington Airport Infratil Property Australian Social Infrastructure Partners CDC Data Centres RetireAustralia Vodafone New Zealand Tilt Renewables Longroad  Galileo Green Energy GmbH